The Australian dollar surged more than one US cent to a one-month high on optimism that world finance leaders were close to announcing a comprehensive plan to tackle Europe's sovereign debt crisis.
US stocks scored their third straight week of gains on Friday as anticipation of a fairly solid third-quarter earnings season trumped worries about Europe and weak economic growth.
The Australian dollar continued its climb above parity, after a tumultuous night offshore when ratings agency Standard and Poor's cut its credit rating for Spain.
Falling banking stocks dragged the US equity market down on Thursday amid worry about fallout from a Greek default, but Apple and Google helped the Nasdaq gain for a fourth straight day.
The Australian dollar rose to three-week highs overnight as approval of a European bailout fund looks more likely and after some negative comments about the US economy by its central bank.
Property statistics released today revealed a mixed bag for the sector, with the total value of home sales plunging over the last financial year, despite a fifth consecutive month of rises in home
The Australian share market opened slightly lower on the back of dramatic falls on overseas metals markets and a weak start to the US reporting season overnight.
US stocks drifted to a mixed finish Tuesday ahead of the start of company earnings season and a key vote in Slovakia that could decide the eurozone's rescue fund amid a sovereign debt crisis.
Australia's sharemarket will climb back to its pre-financial crisis record high by 2013/14 and investors will enjoy returns higher than six per cent a year in the meantime.
The Australian share market ended higher but pulled back from earlier gains, as investors digested news that France and Germany have a plan to fix the eurozone debt crisis.
US stocks rallied sharply Monday after Germany and France pledged over the weekend to find a solid plan to address the eurozone debt crisis and shore up European banks within weeks.
Australian shares were higher at noon, bucking a weak US lead as investors took heart in a plan to recapitalise ailing European banks to help contain the impact of the eurozone debt crisis.
Wall Street stocks closed in the red on Friday after a credit downgrade on Italy and Spain snuffed out a rally on better-than-expected US jobs numbers.
Australian shares have posted the best week in over a year as money flowed back into stocks on confidence European banks will be strengthened against a possible Greek default.
The Australian share market opened higher on the back of news European leaders would help cash-strapped banks in the Eurozone debt crisis and a strong lead from Wall Street.
US stocks put on solid gains Thursday, helped by more confidence in banks and the retail sector and in Europe's push to ensure its banks remain stable in the case of a Greek sovereign default.
The Australian share market has continued its rally, led by miners and banks on renewed investor optimism a plan to help ease the eurozone debt crisis is imminent.
US stocks surged for a second day on Wednesday on signs that Europe was preparing a plan to contain the Greek crisis and protect the region's banks from the effects of a Greek debt default.
The Australian share market staged a late rally to close firmly in the black after a similar surge on Wall Street and higher commodities prices overnight boosted resources and financial stocks.
The big four banks have tough decisions to make if they want to grow or even just maintain their share of the mortgage market in a subdued property environment, analysts say.
