Rally in financial markets due to the victory of pro-bailout parties in the Greek election proved to be short-lived. Rises in Spanish and Italian bond yields indicated that the sovereign debt crisis in the Eurozone remained far from being out of the woods. Meanwhile, central banks appeared less willing to implement additional stimulating measures to boost economic growth, tampering market sentiment. In the commodity sector, the front-month contract for WTI crude oil initially rose to a 5-day high of 85.6 before erasing all gains and settled at 83.27, down -0.90% while the equivalent Brent crude contract, initially plunging to a new lowest level since January 2011, also ended the day with -1.60% loss. Gold price moved with great volatility. The benchmark Comex contract fluctuated between 1606.9 and 1631.3 through the day but finished with little change.

Optimism that the Greek election result would ease the disastrous situation in the Eurozone dissipated rapidly as investors realized the real debt and growth problems in the periphery have remained unresolved. The focus was focused on Spain and Italy with bond yields in both economies spiked. Spanish yields soared above 7%. On the banking data, bad loans at the country's banks rose to 8.72% of all loans in April. Yields in Italy also rose to worrying level. The G-20 summit in Mexico was, as expected, a non-event. EU members of the G-20 countries pledged to take all necessary policy measures to safeguard the integrity and stability of the area, improve financial markets and break the feedback loop between sovereigns and banks. Still, no concrete solutions were proposed on how to deal with problems.

The RBA released minutes for the June meeting explaining the rate cut decision. The central bank unveiled that the rate cut decision was made after finely balanced discussion and there was clear evidence suggesting a softening in global conditions, and uncertainty about the future in Europe had increased significantly. Policymakers anticipated inflation stay in the lower part of the targeting range over the next year or so.

On the dataflow, the US NAHB housing market index stayed unchanged at 29 in May, better than market expectations of 28. Housing starts probably increased +3K to 720K in May while building permits gained +15K to 730K. In the Eurozone, the ZEW would release sentiment data. The bloc's ZEW economic sentiment probably fell to -5.7 in June from -2.4 in the prior month. In Germany, the economic sentiment index might have dropped to 2.5 in June from 10.8 a month ago while the current situation index slipped -5.1npoints to 39.