The Australian share market has made solid gains after the European Central Bank hinted it may take more measures to boost Europe’s stagnant economy.
The prospect of more ECB stimulus in December has boosted equity markets around the world.
Phillip Capital senior client adviser Michael Heffernan said the prospect of more economic stimulus had helped give a big lift to US and European markets in particular, and the Australian bourse had followed suit.
“It’s been a shot in the arm emanating from Europe and America,” Mr Heffernan said on Friday.
“When you see two per cent-plus rises in Europe and America you know we’re going to be in for a pretty good day.”
Mr Heffernan said economic stimulus measures in Europe may not affect the Australian share market directly, but the local bourse still benefited from the “international infectiousness” generated by the ECB comments.
“But the sentiment tends to be short-lived,” he said.
In the resources sector, global miner BHP Billiton rose 49 cents to $24.59.
BHP Billiton chairman Jac Nasser told shareholders in London overnight that despite resource shares being under pressure, BHP Billiton remains “robust and resilient”.
Rio Tinto gained 73 cents at $53.39, and Fortescue Metals ascended eight cents to $2.58.
In the energy sector, Drillsearch soared 17 cents, or 25.95 per cent, to 82.5 cents, and Beach Energy lifted two cents to 68.5 cents. The two companies want to merge to create a $1.2 billion company.
Santos was up 14 cents at $6.46. Santos will cut its 2015 capital expenditure by a further 10 per cent to $1.8 billion as it looks to ride out the impact of weak oil prices.
Among the major banks, National Australia Bank was 61 cents richer at $32.44, Westpac put on 53 cents at $31.56, ANZ strengthened 30 cents to $28.90, and Commonwealth Bank advanced 96 cents to $77.35.
All four banks have increased their standard variable home loan interest rates, citing market pressures and a need to increase capital reserves for the hikes.
Among other stocks, the developer of Westfield shopping centres in Australia, Scentre, was up 10 cents at $4.12 after Westfield co-founder Frank Lowy announced he would retire as chairman of Scentre.
KEY FACTS
* At 1625 AEDT on Friday, the benchmark S&P/ASX200 index was up 87.8 points, or 1.67 per cent, at 5,351.6 points.
* The broader All Ordinaries index was up 88.4 points, or 1.67 per cent, at 5,388.0 points.
* The December share price index futures contract was up 89 points at 5,321 points, with 31,565 contracts traded.
* National turnover was 2.7 billion securities worth $5.8 billion.
