Australian Share Recovery...

Australian shares rallied today;

Extending yesterday's remarkable turnaround, as the market held on to gains triggered by a jump overnight on Wall Street. At the close, the benchmark S&P/ASX200 index was up 106.5 points, or 2.6 per cent, at 4141.3, while the broader All Ordinaries index had risen 110.6 points, or 2.7 per cent, to 4207.3.

The rise added about $34 billion to the market's value, as investors swooped to buy shares in what one trader described as an oversold market.

Energy and materials stocks led the gains, jumping 3.8 and 3.3 per cent respectively, while financials added 2.4 per cent. Property trusts and IT bucked the trend, posting a fall of 1.8 per cent and 0.7 per cent.

Regional stockmarkets also clawed back lost ground, while financial bookmakers expect Europe's main indexes, which finished the last session in positive territory, to open slightly higher. But S&P 500 futures fell 0.4 per cent, suggesting at least a pause in Wall Street's sharp rally.

RBS Morgans private client adviser Bill Bishop said the market had been buoyed by improved sentiment in the US.

‘‘We had a massive upswing on the Dow Jones overnight,’’ Mr Bishop said. ‘‘It was wild, but because we follow Wall Street we of course were up - we opened strongly and just got stronger.

‘‘It’s a great psychological boost, what happened yesterday.