European and U.S. markets closed higher during overnight's trading, thereby, raising hopes for a strong trading in the Australian share market today.

The U.S. S&P500 climbed 7.03 points to 1098.87 and the European FTSE 100 went up 21.92 points to 5429.74. The Sydney Futures Exchange morning's share price index contract was 30 points higher at 4568 points. A total of 3947 contracts were traded.

A keen eye on the mines and on the banks could prove beneficial for Thursday's trading. Andean Resources Limited (ASX: AND) shares went down 53 cents at $6.51 yesterday as Canadian gold miner Eldorado Gold Corporation pulled out its bid.

Rio Tinto Limited (ASX: RIO) sealed a deal with Japan's Kobe Steel for a 13 percent cut in the price of iron ore. The decision pulled down its share price by 91 cents. This developed as iron ore explorer Cape Lambert Resources (ASX: CFE) has begun legal action that could delay a multi-billion-dollar magnetite operation in Western Australia's Pilbara region.

Nickel miner Mirabela Nickel Limited (ASX: MBN) is not trading today while gold producer OceanaGold Corporation lost its CEO.

The National Australia Bank (ASX: NAB) and AXA Asia Pacific Holdings (ASX: AXA) wait for the ACCC decision on their proposed merger.