In what has been another strong outing for the local sharemarket, the S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) is up another 0.9% today. It has risen in six of the last seven sessions, more than reversing last Tuesday's horror selloff which saw the bourse drop 3.8%.
It is the miners leading the charge once again, with BHP Billiton Limited (ASX: BHP) and Rio Tinto Limited (ASX: RIO) among the major beneficiaries. The pair have both risen 2.5% after their London-listed shares soared overnight, while fellow miners South32 Ltd (ASX: S32) and Fortescue Metals Group Limited (ASX: FMG) are also trading 8% and 5.5% higher, respectively.
The gains across the resources sector have largely been driven by eased concerns regarding the Chinese economy, together with more stability in commodity prices. Iron ore has remained surprisingly strong through the recent global turbulence, while oil prices have also surged higher this week, with some economists now doubting the resource will return to its recent lows.
Elsewhere, the banks are also enjoying a strong day out. National Australia Bank Ltd. (ASX: NAB) is the worst of the majors, rising 0.7%, while each of its peers have gained between 0.8% and 1.4%. Telstra Corporation ltd (ASX: TLS), Woolworths Limited (ASX: WOW) and CSL Limited (ASX: CSL) are also up 0.5%, 1.7% and 1.5%, respectively.
Unfortunately, I can't predict what the market will do tomorrow, next week, next year, or even this afternoon for that matter. Volatility could return in a big way, or the market could go on to record a new high by the end of the year.
But what I can tell you is that the market's rebound recently indicates that investors are becoming increasingly confident that there are bargains to be found on the ASX right now. Citi even thinks the bourse will be at 6,200 points by the end of 2016 – that's up more than 18% from today's level!
Indeed, this is a buyers' market and investors could certainly do well in the long-term by buying discounted shares today.
