Australian stocks are on a tear

Todd Hodgetts of Australia celebrates gold in the men’s shot put at the Athletics World Championships in Doha, Qatar. by Francois Nel/Getty Images

Australian stocks surged.

The market was at two month highs as local investors followed Wall Street where the S&P 500 added 1.7% in trade overnight.

The rise in global markets was being driven by hints that the European Central Bank is open to providing further stimulus in coming months.

On the local market, all 10 sectors were in the green, led by financials. The rise was spread fairly evenly across the whole market.

The major banks and the big miners all gained ground.

The NAB, which announced a rise in home loan interest rates, was leading the banks, up almost 2% to $32.46.

BHP was 2.3% higher at $24.66. Arrium was up 6% to $0.122.

Santos was up 2.2% to $6.46 despite reporting a 24% drop in sales to $808 million in the September quarter.

Drillsearch, which is merging with Beach Energy, added more than 20% to $0.797.

Among retailers, Kathmandu was up 4.5% to $1.51.

Woolworths was 2.5% higher to $27.48 after unconfirmed reports that it could be selling its Big W division to a private equity group.

Qantas was marginally higher at $3.86 after announcing a 2.1% rise in passenger numbers since the start of July.

The ASX 200 broke through 5300 points.

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