Australian stocks are surging

Photo by Lintao Zhang/Getty Images for IAAF

Wednesday’s low of 5192 is but a memory this morning with the ASX 200 surging 46 points to 5,286 up 0.88%.

It’s green all across the board with all of the 10 major sectors of the market strongly in the green. Industrials are leading the charge higher and after crude rallied overnight there has been a strong turnaround in the energy sector with Oil Search, Santos and Whitehaven up sharply.

ASX 200 Thomson Reuters Business Classifications (Reuters Eikon)

But its financials which have the highest weighting and market capitalisation in the index and so its these stocks that are providing a large source of strength for the index.

The banks are up again with the ANZ and NAB leading the pack with 1.1% and 1.3% gains respectively. After rallying 1.9% yesterday in the wake of Goldman Sachs upgrading it from neutral to buy the CBA is another 0.7% higher at $72.02 this morning while Westpac is up 0.89%.

The miners as being lead higher by South 32 which is 2.23% stronger and Fortescue which is up 1.6%. BHP and Rio are also higher up 0.6% and 0.2% respectively.

The push higher has now taken the ASX 200 back inside the uptrend for 2016 which is a solid sign for market sentiment and the period ahead. Chartists would now be looking for a retracement toward 5,335 in the days ahead.

ASX 200 Daily (Reuters Eikon)

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