Market wrap: a share market revival that began in Shanghai on hopes of a new Chinese stimulus package rippled around the world overnight. US markets built on big gains in Europe to close 2 - 2.5% higher, reversing some of the heavy losses over the last five trading days. Resource stocks soared on hopes of increased Chinese buying.
Oil rocketed nearly 9% to $45.15. Base metals built on yesterday's rally, with copper breaking out of its recent trading range to hit a three-month high. Gold continued to retreat, slipping just under 1% to $906.70.
We're in for a big open, with the SPI climbing 72 points to 3234. But note that the US faded heavily in the last half-hour, suggesting traders are not convinced last night's action will be more than a one-day wonder.
I mentioned yesterday that the fundamentals for most resource stocks were improving this week - expect them to roar at the open today, with huge gains overseas in RIO and BHP. AMP put in a reversal candle yesterday and could find buyers with a 16c dividend due tomorrow - especially if ASIC extends the short-selling ban on financials as expected today.
