The Australian market stormed higher today, helped by a positive lead from international markets overnight and the RBA's interest rate cut. The RBA's decision to cut the official cash rate by 25 basis points, to 3.25%, surprised a majority of market pundits.

RBA Governor Glenn Stevens said in a statement that “economic activity in Europe is contracting, while growth in the United States remains modest,” Mr Stevens said.

“Growth in China has also slowed, and uncertainty about near-term prospects is greater than it was some months ago.” The central bank also said that a high Aussie dollar a weak commodity markets was also a factor in the decision.

In regards to inflation the RBA said it has been at the low end of its 2%-3% target range, but believes it will be consistent within the target range over the next one to two years.

A clear majority of sectors finished sharply higher, with property and consumer discretionary leading the way higher. The big miners all had strong gains, with BHP (+1.3%) and Rio Tinto (+1.2%) surging higher.

Sundance Resources is in a trading halt after its suitor Hanlong Group was unable to secure a financial commitment from China Development Bank for its $1.4 billion takeover.

Qantas shares climbed 2.5% after announcing that it sold Australia Post a 50% stake in freight group StarTrack, in a deal that will also see the national carrier take full control of the two group’s Australian air Express joint venture.

The big four banks all gained ground, with ANZ (+0.8%), CBA (+0.3%), NAB (+1.1%) and Westpac (+0.9%) all closing higher. The ASX 200 added 44 points (+1%) to settle at 4433.

Evening Market Analysis: Strong Finish is a post from: Australian Stock Report Market Pulse Blog