Australian shares are expected to surge today following a rebound on Wall Street overnight.
It was only yesterday that the ASX 200 lost $52 billion — wiping out all of its gain from the past year — as it got caught up in a temperamental sell-off across global markets.
The Australian dollar has strengthened to 70.8 US cents, 55.2 British pence and 62.3 Euro cents.
US markets were driven up by bargain hunters and solid earnings from major technology companies.
The Dow Jones index lifted sharply by 401 points, or 1.6 per cent, to 24,985.
The industrial-skewed index has recovered more than half of its 608-point drop the previous day, during which it wiped out all of its gains since January.
The benchmark S&P 500 shot up 1.9 per cent — with most sectors, including technology (+3.7pc) and consumer cyclicals (+3.2pc), posting gains.
The tech-heavy Nasdaq index surged 3.5 per cent. It was helped by a surge in Twitter (+15pc), Tesla (+8pc) and Microsoft (+6pc), after the tech companies posted earnings which beat market expectations.
Market analysts point to several reasons for the volatility this past month.
They include rising US interest rates, the US-China trade war slowing global economic growth, disappointing quarterly earnings from some major American companies, geopolitical tensions with oil producer Saudi Arabia for the killing of journalist Jamal Khashoggi, and Italy's conflict with the European Union regarding budget spending.
In after-hours trade, Amazon stocks plunged 9 per cent, after the company released weaker-than-expected quarterly results.
Facebook and Netflix also fell sharply after the closing bell (down 2.4 and 3.3 per cent respectively).
The fall in value of these major US stocks is expected to cause more volatility on Wall Street when it trading re-opens on Friday (local time).
