The Australian sharemarket rose almost one per cent in the second day of gains, as markets recovered from last week's massive losses on hopes of a solution to Europe's debt crisis. However, the market investors remained unsure whether a solution to the crisis could be found amid conflicting media reports. The benchmark S&P/ASX200 index had risen 34.9 points, or 0.87 per cent, to close at 4,039.5, while the broader All Ordinaries index rose 34.2 points, or 0.84 per cent, to 4,097.7. Consumer discretionary stocks led the market, closing 1.4 per cent higher, with department store giant David Jones gaining 4.6 per cent to $2.93 and fellow retailer Myer rising 4.5 per cent to $2.10. There were broad based gains across all sectors except for health care stocks, which lost 0.2 per cent.

Energy, Metals Stocks

Energy stocks rose 1.4 per cent after world oil prices soared on Tuesday night, mirroring gains on world equity markets. Woodside Petroleum gained 3.5 per cent, or $1.08, to $31.94 and Santos added three cents to $11.06. Turnover was 2.22 billion shares changing hands for $6.03 billion, with almost seven of every 10 stocks rising. Making news, chemical manufacturer Orica's shares jumped 3.7 per cent to $23.20 despite higher than permitted mercury vapour levels being detected around its Sydney plant, just weeks after residents near its Newcastle plant were exposed to hexavalent chromium. Drilling services group Boart Longyear was the best performing stock on the ASX 100, gaining 6.1 per cent to $2.80. The weakest company on the same index was Fortescue Metals, which lost 7.9 per cent to $4.52. The spot price of gold in Sydney was $US1,642.8 per fine ounce, down $US7.92 from Tuesday's close of $US1,650.72.

Australian Dollar

The Australian dollar slipped slightly Wednesday on the absence of a clear plan to resolve the euro-zone debt crisis. Even so, it has done little to dent a strong rebound in the currency so far this week after those debt worries had sent the Australian dollar down about 6% last week against the U.S. dollar. The Australian dollar was at $0.9875, down from $0.9891 late Tuesday, with Greene tipping support should Greece concerns grow in European action at $0.96000. Against the Japanese yen, the Australian dollar was at 75.625, up slightly from 75.566.