In the United States, data showed pending sales of previously owned homes increased to a six-month high in April, as property investors take advantage of the home buyer’s tax credit.
The news was enough to push US shares back into positive territory, with the Dow Jones index closing up 2.3% at 10,249.54 points.
In Europe results were mixed, with the pan-European FTSEurofirst 300 index closing up 0.1%, while London’s FTSE 100 closed down 0.2% and Germany’s DAX 40 held steady.
European investors received some much-needed positive news from Spain as the debt-plagued country announced its unemployment rate had fallen by the largest amount in five years during May.
Spain has been a major cause for concern, sporting high sovereign debt and the highest unemployment rate in the eurozone.
The latest jobs data has given some hope for the country’s labour market, although its overall economic outlook remains downbeat.
Back in Australia the positivity from overseas spread, infecting investors in every area of the market. The S&P-ASX 200 rose 2.4% to 4486 points.
Resource stocks performed well in spite of falling base metal prices on the London Metal Exchange.
Rio Tinto had the highest gain of the day, its share price rising $A2.29 to $69.05, followed by BHP Billiton with a 91c increase to $38.74.
Also near the top was gold miner Newcrest Mining, rising 48c to $32.50 on the back of continued strength in the gold price.
Spot gold remained steady around the $US1222 per ounce mark today, slightly lower than yesterday’s close of $1225.23/oz.
Gold and copper explorer Rex Minerals was less successful, coming out at the bottom of the market with a A6.5c drop to $1.21.
On the LME overnight base metal prices fell across the board. Nickel had the biggest drop, shedding 4.2% to $US19,574 per tonne, while zinc fell 2.8% to $1769.75/t and copper fell 1.2% to $6638/t.
However, the falls had very little impact on local producers, particularly in nickel and copper, where the majority of stocks rose.
Zinc stocks were a little more subdued, although still relatively positive. Kagara shares topped the list of zinc players with a A2.5c gain, closing at 57.5c, while Blackthorn Resources came out at the bottom, losing 1.5c to 65.5c.
