Australian stocks rally, ASX back above 5000

Zach Tuohy at the beach during a Carlton Blues AFL pre-season training camp at the Gold Coast. Michael Dodge/Getty Images

Australian stocks are rallying.

The ASX 200 broke back above the 5000 point level. A short time ago, the index was 5,009.00, up 99.44 or 2.03%.

Investors followed Wall Street where the S&P 500 closed up 1.1%, led by energy and financial stocks ahead of an expected lift in official US interest rates on Thursday.

The local market, which at yesterday’s close had dropped 5% in December, appeared ready to break a run of six negative trading sessions and a two-year low.

Energy stocks were up 3% with Santos adding 4.5% to $3.43 and Woodside Petroleum 2% to $26.75.

And the big miners reversed direction with BHP up almost 5% to $17.08 and Rio Tinto 3% to $43.01.

The major banks were also in the green, adding more than 2% across the board. The Commonwealth was up 2.3% to $78.68.

Domino’s Pizza was up 10% to $54.30 after announcing a deal to buy a local pizza chain in Germany.

And Rewardle was up by almost one-third to $0.215 after Google said it will be one of the first apps in Australia to use Android Pay.

Flight Centre added 2.5% to $35.015 after announcing it was buying the US-based group of companies specialising in student and youth travel.

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