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The Australian market, buoyed by a rise in commodities including oil, clawed back some of the heavy losses of the previous two sessions.

The S&P/ASX 200 closed up 1.41%, led by BHP which rose 3.8% to $30.40 after losing 5.3% on Monday.

Market analysts say to expect more volatility led by commodity prices.

The last two trading sessions have seen the market lose about 3.6%, or about $50 billion in market capitalisation. Today the market recovered around $19 billion.

First, the scoreboard:

  • S&P ASX 200: 5,281.30 +73.58 (+1.41%)
  • All Ordinaries: 5,260.00 +69.33 (+1.34%)
  • AUD/USD: 0.8509 +0.0016 (+0.19%)

And the top stories on Tuesday:

1. Housing bounces back. The ABS released building approvals data for October showing an amazing jump of 11.4%.

2. There’s growing discussion on whether the RBA will cut rather than increase rates next time it decides on a move. Today the RBA left the cash rate unchanged at 2.5%. However, Deutsche Bank says it now expects the RBA to cut interest rates next year by as much as 0.5 percentage points.

3. Expect more volatility in the market. Evan Lucas of IG says the last 24 hours of trade says three things: “Volatility is coming, the longer term fundamentals are to the downside and companies with exposure to the underlying commodities are in for plenty of trade action in 2015.”

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