ASX surges, following massive rebound on Wall St and European markets

Australian shares have rebounded from last week’s negative volatility, following a massive rally on Wall Street and European markets.

The benchmark ASX 200 jumped 1.5 per cent to 5,704 by 12:00pm (AEDT).

The broader All Ordinaries index lifted by a similar amount to 5,764 points.

Meanwhile, the Australian dollar was steady at 71.2 US cents. Over the weekend, it bounced back from a flash crash, which briefly took the dollar to a 10-year low of 67.3 US cents.

Bluescope Steel (+5.3pc), Nine (+4.3pc), AMP (+4.5pc) and Santos (+4.3pc) were some of the big-name stocks driving the local market higher.

Mining giants BHP and Rio Tinto lifted 3.2 and 2.7 per cent respectively.

The major banks have also posted solid gains, rising between 1 per cent (Westpac) and 1.4 per cent (ANZ).

Every sector was trading higher, with technology (+2.4pc), resources (+2.5pc) and energy (+2.8pc) being the strongest performers.

Job figures and Fed’s rate comments boost market

Global markets tanked last week after Apple issued a rare profit warning — as it blamed the weakening Chinese economy, rising US-China trade tensions and less people upgrading to new iPhones for its lowered expectations on first-quarter revenue.

However, that sell-off turned out to be short-lived as US and European markets more than recovered their losses on Friday (New York time).

Wall Street’s main indices surged — between 3.3 per cent (Dow Jones) and 4.3 per cent (Nasdaq) — after figures from the Labor Department showed the number of new jobs created in America was almost double what had been expected.

The benchmark S&P 500 also lifted strongly by 3.4 per cent.

The US economy created 312,000 new jobs in December, while economists had been expecting 176,000.

Also re-igniting the bullish sentiment were comments from Federal Reserve chairman Jerome Powell, asserting the central bank’s independence.

Mr Powell, speaking on

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