The Australian market ripped higher

David Rogers/Getty Images

The Australian market jumped higher after two straight sessions of heavy falls in the face of a worsening Greek debt situation.

Analysts had been expecting a bounce in stocks after a muted reaction to Greece by markets in the US and Europe.

On Wall Street overnight, the S&P 500 was down 0.4%. On the local market all ten sectors were stronger. The ASX 200 closed at 5,581.40, up 106.40 points or 1.94%.

Investors were jumping on bank stocks. Westpac was up 3.2% to $33.53, the NAB up 2.36% to $34.26, the ANZ 2.24% to $32.93 and Commonwealth 1.76% to $87.82. AMP was up 3.3% to $6.26.

Qantas was up 7.7% to $3.42 as oil prices fell. But energy stocks were weaker with Santos down 1.42% to $7.63 and LNG 0.99% to $4.00.

Investors were mostly ignoring weaker commodity prices. Fortescue was up 2% to $1.75. BHP was at $25.96, down 0.19%, and Rio Tinto was up 1.15% to $51.75.

Gold stocks, a traditional safe haven in times of volatility, were popular. Northern Star was up 2.77% to $2.23 and Newcrest 2.06% to $13.14.

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