International markets extended gains overnight, with bourses on both sides of the pond finishing in the green.
In London the UK's FTSE 100 added 72 points (+0.6%) to settle at 5688, whilst the French CAC (+1%) and German DAX (+1.3%) enjoyed even stronger gains.
In the US, stocks climbed in an abbreviated holiday trading session after an encouraging report about manufacturing.
The report was welcome after a trade group reported on Monday that US manufacturing shrank in June for the first time since July 2009, the first month after the Great Recession ended.
The blue-chip Dow Jones put on 72 points (+0.6%) to settle at 12944, whilst the S&P (+0.6%) and NASDAQ (+0.8%) also advanced.
The Australian dollar touched the highest level in two months versus the greenback as commodities climbed amid speculation global central banks will act to spur economic growth.
This morning the local unit is buying US$1.0285.
Oil surged to a one-month high on speculation that central banks from Europe to China will ease monetary policy to spur growth while sanctions against Iran may curb supply.
Oil for August delivery climbed $3.91 to settle at $87.66 a barrel on the NYMEX, the highest level since May 30. Futures have increased 13 percent since closing at an eight-month low of $77.69 a barrel on June 28. They are 11 percent lower this year.
Gold climbed to the highest price in two weeks amid speculation that central banks will take more action to spur growth, boosting demand for the metal as an inflation hedge.
Gold futures for August delivery rose 1.5 percent to settle at $1,621.80 an ounce at 1:41 p.m. on the Comex in New York, after climbing to $1,625.70, the highest for a most-active contract since June 19.
Today's session will bring us important retail sales data, at 11:30am, AEST.
Receive Daily FREE Trading Recommendations, click now.
Morning Market Analysis: The Rally Continues is a post from: Australian Stock Report Market Pulse Blog