SYDNEY: The Australian sharemarket jumped in early trade, after snapping a six-day losing streak on Wednesday, as strong commodity prices and buoyant overseas markets drove gains.
At the 10.15am (AEST) official market open, the benchmark S&P/ASX200 index was up 41.6 points, or 0.76 per cent, at 5,520.2, while the broader All Ordinaries index gained 41.2 points, or 0.75 per cent, to 5,527.2.
The benchmark fell to a four-month low on Tuesday and was headed for a technical correction, before mining and energy stocks helped stabilise the bourse.
“Since the selling began to ease this week, it certainly felt like a relief rally might not be far away, but the question now is whether we’ll see something sustained or short-lived,” Rivkin Securities chief executive Scott Schuberg said.
Major miners gained after iron ore prices extended a rally to seven days, pushing the commodity above $US65 a tonne for the first time in four months.
Global benchmark oil prices jumped after US data showed declines in crude and gasoline inventories, also helping the energy and resources sectors.
US stocks climbed at the close, driving the Dow Jones Industrial Average up 1.3 per cent for its biggest one-day gain in a month, as technology and financial stocks rallied, while investors embraced encouraging signals over Greece’s financing talks.
Locally on Thursday, the market will be focused on latest employment data the Australian Bureau of Statistics will release at 11.30am (AEST).
