After trading as low as 4174 on the back of soft leads from international markets last night, the Aussie market has bounced back strongly to currently be trading around 4240.

The catalyst for the comeback was the latest CPI figures which showed underlying inflation coming in below analyst estimates in the September quarter and subsequently increasing the likelihood of an RBA rate cut next week.

Most sectors are trading higher heading into the afternoon session, with healthcare and financial stocks leading the charge.

Big movers on the day include Billabong (BBG) which has built on yesterday's gains by adding another 11%, and Nexus Energy (NXS), which is up more than 5%.

Around the region, Asian markets are mixed; the Hang Seng (-1%) and Nikkei (-0.8%) are both weaker, whilst the Shanghai composite is stronger (+0.2%).