After languishing underwater earlier the session, the Aussie market has roared to life in the last hour on the back of some positive announcements out of Europe.

The XJO traded as low as 4032 but has since jumped to as high as 4105.

The index is currently holding around 4090, approximately 45 points (+1.1%) to the good.

The gains are widespread, with the clear majority of sectors in the green; industrial and energy stocks lead the way, whilst IT and consumer staples stocks the weakest links.

In company news, St Barbara (-14.2%) and Allied Gold Mining (60.1%) has announced it has planned to merge the two companies to create a combined group with a market value of around $1 billion.

Elsewhere, David Jones has jumped 13.7% after announcing that it has received an unsolicited takeover approach from a non-incorporated U.K. entity.

Around the region, Asian markets are mainly stronger; the Hang Seng is up 2.3% whilst the Shanghai Composite is up just 0.1%.

The Nikkei remains underwater, down 0.1%.

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Midday Market Analysis: Exploding Higher is a post from: Australian Stock Report Market Pulse Blog