The share market is rallying on global optimism about a potential bailout deal for Greece.

Overseas markets rose overnight on optimism that a deal between Greece and the European Union, the European Central Bank and the International Monetary Fund could spare Greece from defaulting on its debt.

All sectors of the local market had lifted more than one per cent during morning trade, OptionsXPress analyst Ben LeBrun said.

“It’s going gangbusters,” he said.

“There’s lots of optimism that we’re going to get a good outcome over the next couple of days.”

But investors are wary of the debt situation in Greece, and will be closely monitoring the progress of negotiations over the next 24 hours, Mr Le Brun said.

The banks were a key source of growth, with Commonwealth Bank up $1.64, or 1.95 per cent, at $86.65, National Australia Bank had added 50 cents, or 1.45 per cent, to $34.26, ANZ was up 59 cents, or 1.8 per cent, at $33.51 and Westpac was 57 cents stronger, up 1.7 per cent, at $33.69.

Telstra was up seven cents at $6.25.

The big miners were mixed, with BHP Billiton up 28 cents at $28.63, Rio Tinto up 49 cents at $56.29 but Fortescue Metals down two cents at $2.19.

Hospitals operator Healthscope was up five cents, or 1.7 per cent, at $2.70 after announcing it will sell its Australian pathology operations for $105 million to a private equity group.

KEY FACTS

* At 1200 AEST on Tuesday, the benchmark S&P/ASX200 index was up 71.2 points, or 1.27 per cent, at 5,681.4 points.

* The broader All Ordinaries index was up 66.6 points, or 1.2 per cent, at 5,669.7 points.

* The September share price index futures contract was 72 points higher at 5,627 points, with 19,149 contracts traded.

* National turnover was 938 million securities worth $2.3 billion.