Australian stocks head higher

Matthew Cox of Australia competes in the Snowboard World Cup Halfpipe Qualification during the Winter Games in Wanaka, New Zealand. Camilla Rutherford/Getty Images

The Australian market is rallying.

Global stock markets rose overnight with the S&P 500 closing 2.43% stronger.

The local market has already made up the 4.09% loss on Monday which was sparked by fears over China’s economy and sharp falls in the equity market in Shanghai.

Today, resources stocks led the surge after oil prices jumped almost 10% overnight. Energy stocks gained 4% in value.

BHP was up 4.7% to $25.19, Woodside 2.6% to $32.32 and Santos 8% to $5.42. Pure play iron ore producer Fortescue was up 6.7% to $1.91.

All the major banks were stronger led by the ANZ, up 1.2% to $28.92.

Woolworth, which announced a disappointing annual profit result, was trading flat at $27.09, up just 0.15%.

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