The Australian sharemarket is marching higher today, driven by a rebound on global equity markets overnight which saw the Dow Jones rise 1.4%.
Although investors are clearly still hesitant to commit too much capital to the share market – given the recent bout of volatility we've experienced – they seem to be becoming increasingly willing to pick up a bargain or two upon signs of a rebound.
The S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) rose strongly at the market's open and hasn't looked back since. It's currently trading 1.3% higher at 5084 points, led by the nation's biggest banks and miners.
Commonwealth Bank of Australia (ASX: CBA) is the best performing bank today while Westpac Banking Corp (ASX: WBC) is a close runner up. The pair are up 2.2% and 2.1% respectively, while National Australia Bank Ltd. (ASX: NAB) and Australia and New Zealand Banking Group (ASX: ANZ) are up 1.6% and 1.4%.
The miners have also flexed their muscles, despite a decline in the iron ore price overnight. Rio Tinto Limited (ASX: RIO) and Fortescue Metals Group Limited (ASX: FMG) rose 0.8% and 1.2% each while BHP Billiton Limited (ASX: BHP) surged 1.6%. BHP is also benefiting from a lift in oil prices which acted as one of the key factors behind the surge in international equity markets overnight.
Elsewhere, Telstra Corporation Ltd (ASX: TLS) has risen 1.3%, Macquarie Group Ltd (ASX: MQG) is up 1.7% and Wesfarmers Ltd (ASX: WES) jumped 0.8%.
Although it would be naïve to assume the market's volatility is over, it is also fair to say many companies have become oversold. Just as there is the possibility of further falls in the near-term, there is also the potential for considerable gains to be made by those long-term investors willing to buy into the panic.
