The Australian share market is higher as the big four banks make a comeback.
Bank stocks have been down in the past three days and were due to start climbing again, Commsec market analyst Steven Daghlian said.
“Those big four banks are contributing the most to the improvement,” he said.
Interest rate changes in Europe has also encouraged risk sentiment, lifting the Euro, US and Australian equities, IG Markets market strategist Stan Shamu said.
The European Central Bank has cut its deposit rate for banks from 0 to -0.1 per cent, which means banks will have to pay the ECB to hold their cash in a move designed to encourage lending.
“The market is anticipating these measures, at least in the short term, to improve Europe’s economy,” Mr Shamu said.
The Dow and the S&P 500 finished on new records after the ECB’s announcement.
At 1200 AEST, the big banks on the local share market were up.
National Australia Bank had climbed 31 cents to $33.54, Westpac had added 26 cents to $34.46, ANZ had lifted 29 cents to $33.52, and Commonwealth Bank had gained 67 cents to $81.62.
Gold miner Newcrest was 21 cents higher at $9.82 but the big miners were all down.
BHP Billiton was two cents lower at $36.18 and Rio Tinto was down 23 cents to $59.42, and Fortescue Metals had fallen 10.5 cents to $4.545.
Investors are waiting for Friday night’s US job figures and Chinese trade figures, due at the weekend.
KEY FACTS
* At 1200 AEST on Friday, the benchmark S&P/ASX200 index was up 22.2 points, or 0.41 per cent, at 5,459.1 points.
* The broader All Ordinaries index was up 19.9 points, or 0.37 per cent, at 5,439.6 points.
* The June share price index futures contract was 20 points higher at 5,462 points, with 11,797 contracts traded.
* National turnover was 647 million securities worth $1.4 billion.
