A number of Australian blue-chip stocks are climbing higher today, but few are rising as strongly as Commonwealth Bank of Australia (ASX: CBA) which has jumped $1.72, or 2%, to trade at a near two-month high of $86.74.
The last time the stock traded at that level was at the beginning of May. At the time, it was stuck in a downward spiral before eventually bottoming out at just $79.19 per share. It has since recovered 9.5% of its value and could be set to climb higher.
Today's gains have come as a result of a wave of optimism that has washed over investors regarding Greece's debt situation, with many investors choosing to pile back into the banks following a major sell-off that saw each of them plunge towards bear-market territory.
Notably, Australia and New Zealand Banking Group (ASX: ANZ), National Australia Bank Ltd. (ASX: NAB) and Westpac Banking Corp (ASX: WBC) have also surged 1.7% higher for the day, aiding the S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) to a 1.3% gain.
Although an official agreement has not yet been made, Athens has made a number of concessions which could help it to raise the funds needed to repay the International Monetary Fund (IMF) by the 30 June deadline.
Should you buy?
Before you get too carried away with Australia's bank stocks, investors need to remember the strong headwinds facing the sector which could hinder their earnings growth potential over the coming years. Commonwealth Bank remains an expensive prospect based on its historical measures and remains a stock for 'Foolish', long-term investors to avoid in favour of some of the market's more attractive offerings.
