(RTTNews) - The Australian stock market was trading higher Monday on bargain hunting following recent losses. News that a series of summits, aimed at reforming global financial systems, were being planned following talks between U.S. President George Bush and French President Nicolas Sarkozy encouraged investors to buy stocks. At 9:11 p.m. ET, the benchmark S&P/ASX 200 index was up 109 points or 2.74% at 4,080, after closing down 1.06% on Friday. The broader All Ordinaries index was gaining 98 points or 2.49% to 4,043.

In the currency market, the Australian dollar opened higher on Monday. The Aussie opened at US$0.6971-0.6978, up from Friday’s close of US$0.6888-0.6892.

On Wall Street, the U.S. stock markets experienced substantial volatility on Friday, while traders weighed some weaker than expected economic data against better than expected earnings from some big name companies. The Dow closed down 127 points or 1.41% at 8,852, the Nasdaq lost 7 points or 0.37% to close at 1,711, and the S&P 500 fell 6 points or 0.62% to finish at 941.

On the economic front, the Australian Bureau of Statistics revealed in a report that producer price index for the third quarter rose 5.6% annually, compared to a 4.7% gain in the second quarter. The report added that the producer prices grew 2.0% quarter-to-quarter in the third quarter.

Meanwhile, the Department of Employment announced that annual wages in Australia climbed an average of 4.0% on year in the second quarter of 2008, up from the 3.7% annual increase in the first quarter. Private sector average wages were up 3.9% in the quarter, up from the 3.7% on-year increase in the first quarter. In the public sector, wages were up an average 4.1% in Q2 following the 3.9% annual increase in the previous quarter.

On Saturday, Aussie Home Loans said that it was dropping its standard variable home loan rate by 30 basis points to 7.79% for first homebuyers after the Australian Federal Government announced further assistance to first homebuyers. National Australia Bank, the country’s largest lender, and ANZ cut their standard variable mortgage rates by 0.20% and 0.25%, respectively, after the government guaranteed their deposits and wholesale funding in response to the global financial crisis. This has raised expectations that the other major domestic banks, Commonwealth Bank and St George, will follow suit ahead of the central bank’s next policy meeting on November 4.

Among banking stocks, Commonwealth Bank of Australia gained 1.79%, National Australia Bank added 4.07%, and ANZ Banking Group was up 0.77%. Westpac advanced 3.35%, investment bank Macquarie Group edged up 0.41%, and St. George bank was up 1.79%.

In the resources sector, index leader BHP Billiton rose 4.51% and Rio Tinto added 3.48%. Gold miners were weaker, after gold closed lower, for a seventh straight session, on Friday. Lihir Gold fell 5.33%, and Newcrest Mining edged up 0.13%.

On Friday, crude oil futures for November delivery closed higher, clawing back above the key $70 a barrel mark, as traders expected the Organization of Petroleum Exporting Countries or OPEC to reduce production at its meeting next week. OPEC is widely expected to cut production by at least a million barrels a day to combat lower prices.

Oil closed up $1.98 at $71.85 a barrel on the New York Mercantile Exchange, after hitting an intraday high of $74.30. In the Asian session Friday, crude was up $0.86 at $72.71 in electronic trading.

Among energy stocks, Woodside added 3.50%, and Oil Search gained 4.69%, and Santos rose 5.75%.

In the retail sector, David Jones gained 2.58%, giant retailer Woolworths added 3.10%, and Coles’ owner Wesfarmers rose 2.56%.

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Posted in Categories: Australia, Eurozone, Releases, Stocks, USA.

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