The Australian equity market is set to open slightly higher despite falls in overseas markets. The Australian market sold off yesterday after no formal agreement was reached in Poland with the EU leaders.
The Dow fell 108.08 or 0.94% to close the session at 11401.01. Stocks sold off heavily as the US market opened as the weekend news was absorbed by the market. The Dow was down as much as 250 points in early trade however rallied late in the afternoon after Greek officials stated that the parties were close to an agreement.
Financial stocks were the weakest performing sector falling over 2.5%, with materials and energy stocks also falling. The S&P500, the broader index fell 0.98%, while the Nasdaq had modest falls, falling back 0.36%.
The EURUSD continued its sell off, falling to an overnight low of $1.3586, the lack of actions from the European leaders has continued the pressure on the Euro. The AUD fell against the USD as the market returned to risk off mode again.
Gold surprisingly traded down (see Chart Above), falling $35.80 to $1778.90 as the US dollar rose, removing some of the demand for the precious metal and also investors were selling to cover their losses in other markets.
WTI oil fell as the market was in risk aversion mode. Nymex futures fell $2.26 to $85.70.
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