The Australian market opened higher today and kept going as prices for oil and most commodities improved.
The last two trading sessions have seen the market lose about 3.6%, or about $50 billion in market capitalisation.
So far today, the market has clawed back around $17 billion.
The miners and energy stocks were up. BHP returned to the positive, up more than 3.5% to $30.32, and Woodside Petroleum was more than 3% firmer at $35.27.
CMC Markets trader Will Leys says buying is concentrated among materials and energy stocks following a welcome bounce in commodity prices.
“Also, given yesterday’s sell off was so savage, it appears some investors are being enticed by the value proposition,” he says.
However, Fortescue Metals is against the trend, with its shares down 1.9% to $2.56.
Evan Lucas of IG says overnight trade saw silver move through a 15% range, gold through a 6% range, and Brent crude near enough to 7%, while copper moved through 4%.
“A look at the commodities boards suggested Christmas festivities had come early, as each moved from negative to positive and vice-versa,” he says.
“The last 24 hours of trade tells me 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.”