Australian market preview

THE Australian share market is set to continue its rally as world markets rose overnight on hopes of progress on Europe's debt crisis. At 0656 AEDT on Monday, the December share price index futures contract was 19 points higher at 4,097.
The market on Monday ended a six-trading-day losing streak.
The benchmark S&P/ASX200 index rebounded to close up 73.9 points, or 1.85 per cent, at 4,058.2.
The broader All Ordinaries index was up 68.2 points, or 1.68 per cent, at 4,125.8.
In economic news on Tuesday, the federal government hands down its Mid Year Financial and Economic Outlook.  The Housing Industry Association (HIA) releases new home sales figures for October.

 THE Australian dollar has opened higher on the possibility of developments on a euro-zone debt crisis solution.
At 0700 AEDT today, the Australian dollar was trading at 98.87 US cents, up from 98.57 US cents on Monday afternoon.
HiFX trading director Mike Hollows said the local currency had been pushed higher after a good night for international equities, on the back of varied bailout news in Europe.
"We saw European equities surge quite strongly, and that followed onto the US ones - the Dow's currently up two and a half per cent,'' he said.
"There were rumours that the IMF was potentially looking at structuring a 600-billion euro loan to Italy - that's been denied, but it was certainly encouraging.
"Anything which gives us hope from a European perspective is going to be a huge positive, at least in the short term.''

After four weeks of declines, the Australian dollar was showing some signs of rallying, Mr Hollows said.
"There's been a lot of negativity in recent weeks, and we've seen at least a short recovery,'' he said.
"The Aussie did actually go up considerably higher (last night) than where it currently is - around the 99.75 level, so not far off parity.