The Australian market surged in early trade by more than 1% as easing world tensions lightened the mood of local investors.
The S&P/ASX 200 was up 59.97 points or 1.1% to 5,517.00.
William Leys at CMC Markets says the catalyst for the gains is a general easing of geopolitical concerns.
“Global sentiment continued to recover overnight as the conflict in the Ukraine appeared to moderate, at least temporarily,” he says.
“In addition, the situation in Iraq is not currently troubling markets, despite the resumption of US strikes.
“While these issues are not likely to disappear anytime soon, it seems the markets are finding some degree of acceptance, and unwinding some of the risk premium built in prices. However, whether this optimism and ‘acceptance’ will continue is probably dependant on further developments in the respective regions.”
The NAB Business Confidence figures released today also contributed to the general cheer, coming in at a positive 11 compared to last month’s read of eight.
Among the general rise was Domino’s Pizza which jumped 6.31% to $21.91 on a 50% lift in net profit.
A black spot was Woolworths which announced its home improvement business losses would be bigger in 2014 than 2013 and won’t break even until 2016. Its shares were down 0.89% to $35.55.
Ley says investors will be eyeing tomorrow’s Industrial Production data out of China, hoping that the recent run of good Chinese data continues.
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