Australian Stock Market Leads - 02/13/2012
Australian stocks are in for a rough day as there are not enough leads from other markets to rally on Monday's opening, analysts say.
The disappointing results in the U.S. of consumers' sentiment in January, China's exports declining 0.5%, and Europe's unending debt crises will likely impede investors in the sideline in today's trading.
Ric Spooner, chief market analyst, CMC Markets notes the Australian market has a weak lead from international risk markets which generally closed quite a bit lower on Friday.
He is however, confident that "key risk markets such as the Australian Dollar and US stock markets may have a muted reaction to this morning's news from Greece."
"These markets have rallied impressively since mid-December and the ECB's liquidity injection via the LTRO. This creates risk of a buy the rumour; sell the fact type situation for investors. Buyers may prefer to wait for corrections to re-enter at this stage," he adds.
Analyst Stan Shamu from IG Markets points out that based on Saturday morning's close for the futures, the Aussie market sees a drop of 0.2% at 4235.
"JB Hi-fi reports today, and after the big downgrade in mid-December, today's results is unlikely to have any major surprises. Leighton Holdings also reports after having provided guidance in mid-January. On the economic front, we have homes loans data due out at 11.30am. However, Greece will dominate headlines today and is likely to influence risk sentiment," Shamu explains.