Aussie market bounces in early trade, breaks through October high

The Australian market has broken the October highs to open more than one percent higher on Wednesday, led by the banks and miners as a perfect storm scenario plays out in Asia.

By 1025 local time (AEST), the benchmark S&P/ASX 200 index was up 70.50 points, or 1.32 percent to 5,413.3 points, while the broader All Ordinaries index was up 68.60 points, or 1.27 percent to 5,472.50 points.

The Aussie market, and Asian markets more broadly are trading in a perfect storm with modest gains in steel and iron ore futures and the bounce in oil overnight, IG chief market strategist Chris Weston said.

"The Aussie market is a pure macro play right now," Weston said.

"Banks will continue to move higher because the market senses further rate cuts, while the dividend yield in the space is significantly more compelling than that of the bond market, especially when adjusted for inflation."

The real victory however will be if the Aussie cash market can close above the October 29 high of 5384 points to re-claim 50 percent of losses occurred between mid-April 2015 to mid-June.

In early trade, ANZ is up 1.32 percent, the Commonwealth Bank of Australia lifted 1.15 percent, the National Australia Bank rose 1.45 percent and Westpac gained 1.31 percent.

BHP Billiton bounced 3.53 percent, rival Rio Tinto added 2.40 percent and gold miner Newcrest is 1.21 percent higher.

Oil Search climbed 2.23 percent, Santos rallied 2.85 percent and Woodside Petroleum is 1.55 percent stronger.

Wesfarmers is up 1.04 percent while rival Woolworths surged 2.94 percent.

Qantas edged 0.44 percent higher while Telstra is 0.62 percent stronger. Endit