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Australian Market Significantly Higher

The Australian stock market is significantly higher on Tuesday, recouping some of the losses in the previous two sessions, with the benchmark S&P/ASX 200 back above the 7,300 level, following the broadly positive cues from Wall Street overnight, as traders picked stocks at a bargain after the virus-induced sell-off.

Traders also digested reports that the new coronavirus variant would be milder than initially dreaded.

The benchmark S&P/ASX 200 Index is gaining 83.10 points or 1.15 percent to 7,322.90, after touching a high of 7,329.40 earlier. The broader All Ordinaries Index is up 86.50 points or 1.14 percent to 7,649.00. Australian stocks closed modestly lower on Monday.

Among the major miners, Mineral Resources is adding more than 1 percent, while BHP Group and OZ Minerals are gaining almost 1 percent each. Rio Tinto is edging down 0.2 percent and Fortescue Metals is losing more than 1 percent.

Oil stocks are mixed. Woodside Petroleum is gaining more than 1 percent, while Oil Search and Beach energy are edging up 0.3 percent each. Origin Energy is losing more than 1 percent and Santos is flat.

Among the big four banks, National Australia Bank is gaining almost 2 percent, Commonwealth Bank is adding almost 1 percent, ANZ Banking is advancing almost 3 percent and Westpac is up more than 1 percent.

Among tech stocks, Appen and Xero are gaining more than 3 percent each, while WiseTech Global is up 1.5 percent and Afterpay is edging up 0.5 percent.

Gold miners are mostly lower. Resolute Mining is losing almost 1 percent and Northern Star Resources is edging down 0.5 percent, while Newcrest Mining and Gold Road Resources are slipping more than 1 percent each. Evolution Mining is gaining almost 1 percent.

In economic news, the total number of building permits issued in Australia was down a seasonally adjusted 12.9 percent on month in October, the Australian Bureau of Statistics (ABS) said on Tuesday, standing at 15,911. That missed forecasts for a drop of 2.0 percent following the 4.3 percent decline in September. On a yearly basis, total permits sank 8.1 percent, permits for houses fell 3.7 percent and permits for dwellings excluding houses dropped 16.5 percent. The overall value of buildings approved was A$10.112 billion.

The ABS also said Australia posted a current account surplus of A$23.886 billion in the third quarter of 2021. That missed forecasts for a surplus of A$27.8 billion but was up from A$20.5 billion in the three months prior.

Meanwhile, private sector credit in Australia was up 0.5 percent on month in October, the Reserve Bank of Australia said on Tuesday, slowing from 0.6 percent in September. On a yearly basis, credit was up 5.7 percent, accelerating from 5.3 percent in the previous month.

In the currency market, the Aussie dollar is trading at $0.715 on Tuesday.

On Wall Street, stocks showed a strong move back to the upside during trading on Monday following the sell-off seen last Friday. The major averages all regained ground, with the tech-heavy Nasdaq leading the way higher.

The major averages gave back some ground going into the close but remained firmly positive. The Dow climbed 236.60 points or 0.7 percent to 35,135.94, the Nasdaq spiked 291.18 points or 1.9 percent to 15,782.83 and the S&P 500 jumped 60.65 points or 1.3 percent to 4,655.27.

The major European markets also moved to the upside on the day. While the U.K.'s FTSE 100 Index advanced by 0.9 percent, the French CAC 40 Index rose by 0.5 percent and the German DAX Index edged up by 0.2 percent.

Crude oil futures settled sharply higher Monday, bouncing back and regaining some ground after Friday's setback as traders looked ahead to OPEC meetings. West Texas Intermediate Crude oil futures for January ended higher by $1.80 or 2.6 percent at $69.95 a barrel.

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