The share market has posted gains after a positive lead from global markets and more encouraging local economic data.

A calming in European tensions, speculation of mini-stimulus in China and good US data provided strong rises in early trade, CMC Markets chief market strategist Michael McCarthy said.

Growth in Australian monthly home sales and private sector credit in February, as well as rising inflation, had not provided any negative surprises, he said.

“We’ve got a better picture overseas, a better picture locally … we’ve got plenty of reasons to be cheerful today,” Mr McCarthy said.

The market was nearly one per cent higher during the day, but lost some ground late in the session, as the third quarter of the financial year came to a close.

A fall in the volatility index suggested investors were not worried about the short term direction of the market, Mr McCarthy said.

Most of the major stocks rose.

BHP Billiton gained 33 cents to $34.67, and Rio Tinto added 31 cents to $63.55.

However iron ore producer Fortescue Metals dropped nine cents, or 1.7 per cent, to $5.25, after strong gains last week.

National Australia Bank put on 14 cents to $35.46, Westpac added 13 cents to $34.56, ANZ climbed 24 cents to $33.06 and Commonwealth Bank was 30 cents higher at $77.44.

Telstra gained five cents to $5.08.

Making news, billionaire Kerry Stokes’ Seven Group Holdings has lodged a takeover bid for debt laden oil and gas company Nexus Energy.

Seven Group shares gained three cents to $8.26.

KEY FACTS

* At the close on Monday, the benchmark S&P/ASX200 index was up 27.9 points, or 0.52 per cent, at 5,394.8 points.

* The broader All Ordinaries index was up 26.2 points, or 0.49 per cent, to 5,403 points.

* The June share price index futures contract was 37 points higher at 5,393 points, with 30,105 contracts traded.

* National turnover was 1.8 billion securities worth $4.4 billion.