(Australian Associated Press)
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SYDNEY, July 14 AAP – The Australian share market jumped more than 1.5 per cent on opening, with investors taking comfort from the Greek debt deal.
At 1017 AEST, the All Ordinaries had increased 1.73 per cent, following the optimism seen in international markets as intense 17-hour discussions ended with an agreement between Greece and its creditors.
European markets in particular rallied as fears of a Greek exit from the euro zone subsided and possibilities of a third bailout were renewed.
“In what has become a familiar scene in last few weeks we’re seeing a very strong rally across the board,” said CMC Markets’ chief market analyst Ric Spooner.
“We’ve seen a lot of false starts as markets become optimistic and pessimistic about Greece, but the extent of the international reaction suggests the markets are confident the issue is behind them in the medium term.”
According to Mr Spooner, this morning’s rise was a catch up after Australian markets were wrong footed as one of the only Asian markets which closed lower yesterday.
Mining companies enjoyed a rebound with BHP share prices increasing 3.75 per cent and RIO rising 3.65 per cent.
* At 1017 AEST on Monday, the benchmark S&P/ASX200 index was up 98.1 points, or 1.73 per cent, at 5,571.3 points.
* The broader All Ordinaries index was up 94.3 points, or 1.73 per cent, at 5,451.6 points.
* The September share price index futures contract was 114 points higher at 5,519 points, with 12,683 contracts traded.
*At 1114 AEST, 473.4 million shares had been traded, with a total value of $1.14 billion.