At 12.05pm (AEDT), the benchmark S & P/ASX200 added 38.9 points, or 0.75 per cent, to 5,249.3, while the broader All Ordinaries rose 38.8 points, or 0.74 per cent, to 5,280.2 points.

US stocks were up almost one per cent, after the release of the minutes of the US Federal Reserve September policy meeting, at which it decided against raising its key interest rate.

Fed officials held off on raising short-term rates at the meeting because of nagging worries about when inflation would return to 2 per cent after running below their official target for more than three years.

The Australian dollar surged as the US dollar slipped on the news, jumping to US72.73c. The peak represents the currency’s highest mark since September 18.

CMC chief market strategist Michael McCarthy said that major sharemarket indices sliced through key resistance levels in strong trading overnight, breaking the bear spell and suggesting the weakness of August and September is over.

“The bullish outlook is confirmed by rallies in key industrial commodities,” he said.

“US Fed meeting minutes released overnight gave nothing away, and local investors will turn to today’s home lending data to guide share market action.”

Resources stocks were leading the market at noon after further rises in copper and oil overnight.

Locally today, the Australian Bureau of Statistics showed home loan approvals rose for third straight month in August, but missed economists’ expectations.

In Australia, the market yesterday overcame a late slide to post a fourth straight daily gain, its longest winning streak since August.

Business Spectator