Judging by the market's mood today, it seems that investors have moved on from the Greek debt situation to instead focus on the many bargains currently being presented by Mr. Market.
After what was one of the most severe sell-offs in recent memory, which saw the S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) plunge to a low of 5390 points earlier in the week, the benchmark index has now rallied 3.6% to sit at 5586 points. It's up 1.3% today alone, led by a number of Australia's most popular blue-chip corporations.
Of course, any day that the market itself is up strongly is sure to be accompanied by a strong day for the Big Four banks, given their heavy weighting on the index itself.
Westpac Banking Corp (ASX: WBC), Commonwealth Bank of Australia (ASX: CBA) and National Australia Bank Ltd. (ASX: NAB) rose 1.7%, 1.1% and 1.3% respectively, while Australia and New Zealand Banking Group (ASX: ANZ) gained 0.9%.
The gains were by no means limited to the banks however, with the resources sector also recording strong gains. BHP Billiton Limited (ASX: BHP) and Fortescue Metals Group Limited (ASX: FMG) managed to rise 1% and 1.6% respectively, despite a marginal fall in the iron ore price overnight, while Liquefied Natural Gas Ltd (ASX: LNG), Santos Ltd (ASX: STO) and Woodside Petroleum Limited (ASX: WPL) lifted despite getting off to a shaky start to the session. The trio rose 6.9%, 1.2% and 1%, respectively.
Although there is certainly risk associated with Greece's debt situation, the market is being comforted by comments from the Reserve Bank's chair, Glenn Stevens, who is adamant that Australia is protected from any direct fallout. That is, Australia will only be impacted should the situation have a contagion effect on the global economy.
Given the bargains currently being presented on the ASX, it seems that all the market needed was a little push to get going in the right direction again.
