The Australian share market has surged in Wednesday's session, following the leads set by equity markets around the world overnight.
While the Dow Jones, NASDAQ and S&P 500 indices all managed to edge higher in the U.S., the FTSE 100 also rose more than 0.5% in the U.K. with many anticipating further stimulus being announced by the European Central Bank tomorrow. The S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) followed suit, rising 1.3% to be sitting at 5,378 points.
The big four banks and resources giants have acted as the driving force behind the local market today. BHP Billiton Limited (ASX: BHP) has risen 1.7% after it announced it would be cutting back its investment in oil, while Rio Tinto Limited (ASX: RIO) has jumped 2.7%, even though iron ore prices remained relatively flat overnight.
Gold miners Northern Star Resources Ltd (ASX: NST), EVOLUTION FPO (ASX: EVN) and Resolute Mining Limited (ASX: RSG) have also surged higher following a rally in the gold price.
The big four banks have also provided the local bourse with some strength. While Australia and New Zealand Banking Group (ASX: ANZ) has risen 0.7%, Commonwealth Bank of Australia (ASX: CBA), Westpac Banking Corp (ASX: WBC) and National Australia Bank Ltd. (ASX: NAB) have all risen between 1.1% and 1.3%.
Unfortunately, not all sectors have enjoyed the session with energy stocks falling even further overnight. The International Monetary Fund cut its global growth forecasts while Iran said oil prices could fall as low as US$25 a barrel without intervention from OPEC.
