HUGE RALLY: Australian stocks are smashing records

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The Australian market has taken off, jumping more than 2% and breaking a run of four negative trading sessions.

Investors rallied to stronger oil prices at over $50 a barrel, the Ukraine peace deal and RBA governor Glenn Stevens saying the central bank would act if the economy needed it.

“Those three factors put together is why we’re killing it,” says IG market strategist Evan Lucas.

Investors are also buoyed by the profits announced for the half year to December. With less than 20% of ASX companies reporting so far, 60% of results have beaten expectations.

Stocks hit seven year highs and are posting the biggest gains so far this year, according to CommSec.

The trading volume is bigger than average with about 778.8 million shares changing hands valued at $2.6 billion.

Resources stocks are up more than 4% across the board with Rio Tinto the flagship, up 6.44% to $63.76 after announcing good half year results, with reduced debt and bumper dividends.

Rio is dragging BHP along, with investors expecting something similar from the world’s biggest miner when it announces its results later this month. BHP was up 4.68% to $32.14.

Energy stocks were up on average more than 3% with Woodside Petroleum up 3.3% to $34.97 and Oil Search stronger 4.3% to $8.34.

The big four banks are also stronger with Westpac in the lead, up 2.24% to $37.51.

Wall Street closed stronger overnight with the S&P 500 up 1%.

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