Wall Street closed higher overnight on investors' buying in industrial and materials stocks. Meanwhile, the fears of trade dispute between the US and China was offset by the news that a Chinese wealth fund is in talks to take over a minority stake in the US power plant AES.
Yesterday Australian shares fell after Wall Street plummeted on renewed banking fears. The benchmark S&P/ASX200 index plunged 2.4%, or 91.6 points, at 3677.4, while broad-market All Ordinaries index lost 2.4%, or 89.2 points, at 3633.1.
The Australian share market yesterday closed around 3% higher. The benchmark S&P/ASX200 index was up 101.3 points, or 3.03 per cent, at 3444, while the broader All Ordinaries index lifted 92 points, or 2.79 per cent, to 3392.3. With the positive lead of Wall St. the market is expected to continue its upward movement today.
The Australian share market opened higher today led by the financial sector and despite disappointing US economic growth data. US equities slumped on readings on jobs and manufacturing which indicated that businesses and workers still face a tough economy.