Australia’s share market is trading at its highest level since early March after the US and Iran struck a two-week ceasefire, easing soaring oil prices and boosting investor confidence.
The S&P/ASX200 gained 233 points on Wednesday, up 2.55 per cent, to 8,951.8, as the broader All Ordinaries lifted by 244.5 points, or 2.74 per cent, to 9,165.7.
Oil prices plummeted on news of the temporary truce, which hinges key agreements including the re-opening of the Strait of Hormuz to western oil tankers, after its effective blockade by Iran plunged the world into an energy crisis.
It was the bourse’s best day in about a year, returning $83 billion to the All Ordinaries’ $3.1 trillion combined market value after falling more than 10 per cent at its lowest point since the conflict began.
The Australian dollar is buying 70.71 US cents, up from 69.19 US cents on the improved outlook for global growth and commodity prices.
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