SYDNEY: Australian shares have recovered from an early dip and are trading marginally higher just before noon as the market struggles for direction amid an elusive resolution to negotiations between Greece and its creditors.
Developments in bailout negotiations between Greece and its creditors will set the tone for global markets in coming days, as China’s stockmarket plunge seems to have halted after Beijing’s heavy intervention.
Athens faces demands to push through tough reforms to win its third bailout since 2010, as its cash-starved banks look set to run dry in days while a ‘temporary’ Greek exit from the euro was floated by Germany.
At 12.05pm (AEST), the benchmark S&P/ASX200 index was up 8.8 points, or 0.16 per cent, at 5,500.8, while the broader All Ordinaries index gained 8.4 points, or 0.15 per cent, to 5,486.5.
Quay Equities head of trading Tristan K’Nell said trading volumes were low, with many punters on the sidelines amid the obvious issues plaguing markets.
“This morning it was all about Greece and its ongoing debt issues,” he said.
“There were reports that the two biggest economies in the Eurozone — Germany and France — are split on a resolution, with speculation that even more cash will be required than originally thought.”
