Australian shares have rocketed higher today, following the lead set by global equity markets overnight after Greece finally agreed to a new bailout deal with its international creditors.
'Grexit', which refers to Greece's exit from the Eurozone, was seen as the most likely outcome after it initially defaulted on its loans late last month. Overnight however, the embattled nation was forced to accept harsh new austerity measures with a third bailout program worth an estimated EUR86 billion.
Unfortunately, the deal isn't a sure thing just yet with Prime Minister Alexis Tspiras needing to get the Greek government to agree to the deal, while it is also unclear how Greece will cope with the tough conditions in the long-run. For now however, the market seems relieved at the moment of reprieve, bidding the S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) 1.6% higher around lunchtime.
Although the gains have been widespread throughout the market, it is Australia's iron ore miners doing much of the heavy lifting. BHP Billiton Limited (ASX: BHP) and Rio Tinto Limited (ASX: RIO), which account for nearly 8% of the ASX 200, have risen 2.8% and 3.3% respectively, while the smaller Fortescue Metals Group Limited (ASX: FMG) has charged 5.2% higher.
The nation's energy and gas stocks have also risen strongly despite a 1.5% fall in the price of Brent oil overnight. Woodside Petroleum Limited (ASX: WPL) gained 2.2%, while Santos Ltd (ASX: STO) and Oil Search Limited (ASX: OSH) rose 1.9% and 1.5% each.
Elsewhere, National Australia Bank Ltd. (ASX: NAB) and Westpac Banking Corp (ASX: WBC) were the strongest performing banks, jumping 1.5% each, while CSL Limited (ASX: CSL), Woolworths Limited (ASX: WOW) and Telstra Corporation Ltd (ASX: TLS) rose between 1.1% and 2.6% for the day.
Although it is impossible to predict with any certainty whether the market's optimism will last, or for how long, now certainly appears to be a great time to buy some beaten-down stocks before all the big gains are recognised.
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