Aussie market opens with relief rally

Australian equities bounced at the open, shrugging off global equity falls and lifting the beaten down financials and resources stocks.

At 1010 AEDT on Thursday, the benchmark S&P/ASX200 index was up 56.7 points, or 1.17 percent at 4,898.2, while the broader All Ordinaries index was up 54.0 points, or 1.10 percent at 4,950.9.

The savage sell-off in Australia's blue chip financials and resources since the start of the new year has seen bargain hunters return for quick gains, however investor nerves will be tested following the sell off in European and U.S. equities overnight, CMC Markets chief market analyst Michael McCarthy said

"A number of commentators are pointing to a further rout in oil prices as the catalyst for the fall. The logic is tenuous at best," McCarthy said.

"Oil prices are falling because supply is increasing-- not due to weakening demand.

"While this may have deflationary impacts, on balance lower input prices for companies are good for profits and the broader economy."

ANZ is up 1.11 percent, the Commonwealth Bank of Australia added 1.10 percent, the National Australia Bank edged 0.71 percent higher and Westpac rallied 1.46 percent.

BHP Billiton rosed 0.42 percent, rival Rio Tinto surged 2.75 percent and gold miner Newcrest is 1.37 percent stronger.

Oil Search edged a 0.18 percent gain, Santos lifted 0.40 percent however Woodside Petroleum slipped 0.59 percent after announcing a revenue hit from lower oil and gas prices.

Wesfarmers and Woolworths added 1.67 percent and 0.47 percent respectively.

Qantas bounced 2.12 percent and Telstra climbed 1.39 percent.

Endit