Market crash? What market crash?
The S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) is on fire again today, following the lead set by international equity markets overnight as a result of a rebound in oil prices. The Australian market picked up where it left off after yesterday's 1.6% jump, rising as much as 1.9% today. It hit a peak of 5194 points, before retreating to 5164 – a 1.3% rise.
Indeed, Brent oil, which is the global benchmark, rose 4.4% to US$49.87 a barrel while US crude oil rallied 5.7% to US$47.15 a barrel. This came after the Energy Information Administration said stockpiles of the resource slipped 2.1 million barrels last week, thus easing the market's oversupply situation. At the same time, iron ore also remained steady, shedding just 0.1% of its market value overnight.
BHP Billiton Limited (ASX: BHP) was one of the key benefactors with its shares rising 2.7% as a result. Santos Ltd (ASX: STO) and Woodside Petroleum Limited (ASX: WPL) also gained 3.3% and 2.4% while Rio Tinto Limited (ASX: RIO) was up 1.5%.
The Big Four banks also put on a show with investors taking advantage of the dive in their share prices recently. Westpac Banking Corp (ASX: WBC) and Australia and New Zealand Banking Group (ASX: ANZ) rose 1.7% each while Commonwealth Bank of Australia (ASX: CBA) and National Australia Bank Ltd. (ASX: NAB) were up 0.9% and 1.5%, respectively.
The strong gains over the last two days are certainly encouraging for investors – many of whom are likely anxious ahead of the US Federal Reserve's decision on interest rates tomorrow morning. While it is impossible to tell how the market will respond to the decision (whether it be to hold or increase interest rates), investors should still look to take advantage of any weakness in the market over the coming days or weeks.
