Australian stocks have extended their gains in trading on Friday, trading 42 points or 0.8% higher following a 2.1% gain yesterday after the US Federal Reserve announced that it would begin trimming its stimulus measures by US$10 billion a month as of January.
Prior to yesterday's surge, the S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) had fallen by 4.2% in what was the slowest start to December the local market had experienced in 40 years. The fall can be largely attributed to profit-taking by investors following a strong 12 months, a weakening Australian dollar as well as fears regarding the Federal Reserve's next move.
However, the Fed's announcement on Thursday brought clarity to the market which has rallied as a result.
The big four banks have seen their stock prices rise once again with Commonwealth Bank (ASX: CBA) and ANZ (ASX: ANZ) leading the way up 1.2% and 1.4% respectively, while Westpac (ASX: WBC) and NAB (ASX: NAB) have gained 0.7% apiece. Westfield Group (ASX: WDC) has also extended its gains today with its shares increasing by 1.2% following yesterday's 2.1% jump.
Meanwhile, since hitting a low of $10.05 per share on Wednesday, QBE Insurance Group (ASX: QBE) has climbed 12.8% after gaining another 4% today. Woodside Petroleum (ASX: WPL) and Twenty-First Century Fox (ASX: FOX) have also performed strongly today having gained 1.8% and 2.4%. Shares in Telstra (ASX: TLS) are up 1.1% after the telco agreed to sell its Hong Kong business for US$2.4 billion.
However, the gains haven't been enjoyed by everyone. For instance, Myer (ASX: MYR) is trading in the red by 3.5% while Perseus Mining (ASX: PRU), Kingsgate Consolidated (ASX: KGN) and Lynas (ASX: LYC) are each down between 3.7% and 5.7%. Newcrest Mining (ASX: NCM) and Ten Network (ASX: TEN) are also down 2.7% apiece.
Foolish takeaway
The stock market is showing signs of recovery and while stocks might not be trading as cheap as they were earlier in the week, there are still plenty of amazing opportunities right now!
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