The Australian sharemarket recovered from morning losses, ending the day higher despite weak European leads.
The ASX200 was up 0.96% to 4107, while the broader All Ordinaries index was also up 0.96% to 4159.6.
All widely held stocks closed higher.
CMC Markets sales trader Ben Taylor says the market had shrugged off the looming Spanish banking crisis.
“It has been fact versus sensationalism on a grand scale recently and today fact is starting to rear its head. We are seeing widespread support for equities today as traders take the view our market is oversold.”
“Some of the mid-tier and small cap miners are currently trading at levels not seen since 2008 despite considerable progress made over the recent years. The discount they are currently presenting provides investors with sufficient reason to continue to bid this market higher.”
The Australian dollar is selling at $US0.985, which Taylor says is probably as low as it will go.
“As more cash piles into the Australian bond space and valuation hold up equities I believe we have seen the lows on the Australian dollar for the short run. The recent Australian dollar weakness has been more about USD strength than Aussie dollar weakness and if next week’s rate cut expectations don’t eventuate expect to see the Australian dollar knocking on parity’s door.”