Australian shares have posted a solid open Thursday as the bulls strike back after U.S. and European equities gained and oil surged on a prospect of cooperation between OPEC producers to instigate a production freeze.
At the 1010 market open on Thursday, the benchmark S&P/ASX200 index was up 70.7 points, or 1.45 per cent, at 4,952.8 points, while the broader All Ordinaries index was up 69.1 points, or 1.40 per cent, at 5,007.5 points.
The best explanation for the continued rally that started last Friday, despite Wednesday's loss, appears to be the universal pessimism of the global economic outlook as "the bears have no shares" and therefore little influence on market action, CMC Markets chief market strategist Michael McCarthy said in his morning note.
"The positive moves are now stirring investors that are too cashed up, and there is a risk of a "melt up" on global markets if fear of missing out takes over from fear of catching a falling knife," McCarthy said.
Local trade on Thursday is again set to be shaped by the local earning season with 18 major companies due to report and local unemployment figures giving an indication of Australia's economic progress through the transition.
"However, given everybody up to and including the Governor of the RBA have doubts about the numbers, markets reactions to a strongly divergent number could be tempered by disbelief," McCarthy said. The Australian Bureau of Statistics has flagged positive sample rotations issues are likely once again.
Aussie market consensus is between 10,000 to 13,000 new jobs, however some are forecasting upwards of 15,000 new job increase with unemployment to hold steady at 5.8 percent.
ANZ opened 0.39 percent higher, the Commonwealth Bank of Australia gained 1.53 percent, the National Australia Bank rose 1.72 percent and Westpac lifted 1.47 percent.
BHP Billiton surged 5.13 percent, rival Rio Tinto added 2.09 percent however gold miner Newcrest slipped 0.39 percent.
Oil Search is 2.70 percent higher, Santos rallied 5.17 percent and Woodside Petroleum gained 2.66 percent.
Wesfarmers and Woolworths are 0.93 percent and 1.23 percent stronger respectively.
Qantas edged 0.13 percent higher however Telstra dropped 0.37 percent after reporting a small earnings miss, but a higher dividend payout, which could drag on the market's performance.