KEY POINTS:
The Australian stock market closed in positive territory underpinned by a strong lead from Wall Street overnight.
At the close, the benchmark S&P/ASX200 index was up 55.3 points at 6680.4, while the All Ordinaries gained 52 points to 6738.1.
At 1615 AEDT on the Sydney Futures Exchange, the December share price index contract was 43 points higher at 6695, on a volume of 15,602 contracts.
CMC Markets senior dealer Dominic Vaughan said the local market posted gains across the board after a positive lead from the US.
"We had some recovery in the financials but it really has been across the board today," Mr Vaughan said.
"The good news out of the US has flowed through to our market today."
Mr Vaughan said the US Federal Reserve would likely cut interest-rates when it meets tomorrow, which would have a positive effect on the market.
"I think that there definitely will be a cut ... (but) if they don't, I think there will be a lot of nervousness for our market," he added.
US markets rose as investors reacted to news of a A$11.5 billion injection into the embattled financial sector which helped ease credit concerns.
UBS announced a US$10 billion write-down and a massive injection of funds from Singapore and the Middle East.
The Dow Jones industrial average picked up 101.45 points to 13,727.03.
Locally, the big miners were mixed with BHP Billiton gaining 61 cents to A$44.20 and rival Rio Tinto losing 20 cents to A$146.50.
Rio Tinto confirmed today the company had written to the UK Takeover Panel to request a deadline for BHP Billiton to make a formal offer for the company.
The banking sector was stronger, with ANZ adding 13 cents to A$28.43, the Commonwealth Bank finding 31 cents to A$60.78, Westpac gaining 64 cents to A$29.60 and the National Australia Bank picking up three cents to A$38.91.
Asciano Group gained 25 cents to A$7.93 after the transport infrastructure firm said it would divest or downsize its grain haulage business as the continuing drought squeezes its earnings.
Allco Finance Group put on 42 cents to A$7.78 after the finance house teamed up with an Australian investment manager to acquire a portfolio of power plants in the United States for A$1.67 billion.
AMP added three cents to A$10.57 after the company sold its closed reinsurance and general insurance operation to Bermuda-based Enstar Group Ltd for A$585 million.
The retailers were mixed, with Woolworths putting on 40 cents to A$34.85, David Jones gaining 13 cents to A$5.34, Harvey Norman adding three cents to A$7.06 and Wesfarmers falling 20 cents to A$42.13.
Nufarm gained 35 cents to A$15.05 after China National Chemical Corp said it may still bid for the agricultural chemical company.
Explosives maker Dyno Nobel shed 33 cents to A$2.19 after the company suspended its Moranbah project in Queensland indefinitely because it no longer met the group's financial criteria.
The media sector was mixed, with Fairfax gaining five cents to A$4.82, News Corp dropping five cents to A$24.85 and its non-voting shares falling 23 cents to A$23.81.
The energy sector was stronger, with Woodside adding nine cents to A$47.39, Santos gaining 30 cents to A$14.30 and Oil Search picking up six cents to A$4.70.
The spot price of gold was higher and at 1622 AEDT was trading at USA$807.10 an ounce, up USA$8.40 an ounce on yesterday's local close.
The gold miners were mixed, with Newcrest adding 38 cents to A$33.20, Lihir picking up five cents to A$3.81 and Newmont retreating five cents to A$5.70.
Junior explorer Great Gold Mines was the most traded stock on the market today with 135.5 million shares changing hands, collectively worth A$6.3 million.
Preliminary market turnover reached 1.72 billion, worth a total value of A$6.12 billion with 648 stocks moving up, 602 stocks moving down and 385 unchanged.
- AAP