Regional markets edged higher this morning as reports of a central bank safety net soothed nerves ahead of Greece's Sunday election.
At lunchtime the ASX 200 was up 14 points or 0.35% at 4056 after a brief mid-morning dip into the red. Health, utilities and IT were the only sectors left behind in a rally led by property trusts +1%, telecoms +1%, energy +0.8% and consumer staples +0.7%.
"We are seeing some positioning today ahead of the Greek elections which have the potential to be a major turning point for markets," IG Markets strategist Stan Shamu told Fairfax.
Asian markets staged a cautious advance after G-20 officials leaked plans to support the market ahead of a meeting of leaders in Mexico next week. Japan's Nikkei put on 0.31%, Shanghai 0.3% and Hong Kong's Hang Seng 1.16%. Dow futures were recently up nine points or less than 0.1%.
The rally came despite a warning this morning from a former adviser to George Soros that Japan could default in the next five years. Takeshi Fujimaki said Japan's debt was so great that it had no option but to "print money into hyper-inflation" or default. Read more here.
Crude oil futures rallied 20 cents this morning to US$84.58 a barrel. Spot gold was $2.50 stronger at US$1,626.30 an ounce. The dollar was buying US$1.002.
The G-20 leaks/rumours seem to have given at least a few investors confidence to buy ahead of the Greek election result. Tempting for a short-term bounce but it's questionable whether Greece matters as much now the main game has moved on to Spain and Italy. I made enough early in the week to wait for clearer opportunities than presented themselves this morning - no trades as yet.
