A surge in new capital expenditure growth in Australia helped lift the domestic share market, which finished modestly higher.

Positive predictions about Europe's debt crisis and solid US consumer data have been offset by American Airlines' filing for bankruptcy protection.

US stocks have soared after the central banks of the US, the eurozone, Britain, Japan, Canada and Switzerland announced a plan to help cash-strapped banks.

Australian stocks finished one per cent firmer despite Federal Treasurer Wayne Swan's speech on lower domestic GDP forecasts.

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