Australian Stock Prices Goes Up As Greece Agrees On Bail Out Terms

The Australian stock markets opened on a positive note on Tuesday, as the Greeks accept a bail out deal in exchange of austere measures over its economic policies. S&P/ASX200 rose to 94.8 points, or appreciated by 1.73 percent, to 5,568 at the official market open. All Ordinaries index on the other hand shot up to 91.3 points or escalated by 1.67 percent, to 5,551.7.

Australian stock value had fallen considerably low as a result of a slowdown in the Chinese financial market as well as due to the drama that ensued around Greece financial crisis. But as Athens decides to allow austere measures on its economic policies in order to stay within the common currency zone, the Australian market experiences a surge in its share prices, after taking a dive by 40 points during the early trading.

The Australian dollar was selling for 74.32 U.S. cents and market analysts feared a possibility that it might plunge to 70 U.S. cents given the global market scenario. Investors feared a fall in the value of Australian dollar and moved towards safer economic investments giving the U.S. and Japanese markets an anticipated boost. The scenario at the Chinese financial market has started showing signs of improvement with 1 percent rise in its stock value, which too has re instilled faith amongst the investors in the Australian market, besides the event of political posturing in Europe.

Scott Schuberg, chief executive of Rivkin Securities is of the opinion that the deal helped alleviate fears of an economic backlash in the Australian stock and securities market amongst the investors. "There will likely be civil unrest in Greece, given they voted down a 'better' version of the deal done last night in their referendum," Schuberg said. "However, for now it seems as though the Eurozone is intact and therefore that major uncertainty of a Greek exit seems to have evaporated."

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