With hopes that interventions, including UBS’s government-brokered takeover of struggling rival Credit Suisse, have staved off a wider global financial meltdown, the big four banks also built on the day’s positive momentum.

Commonwealth Bank, the nation’s biggest lender, rose 0.5 per cent, as did NAB. ANZ was up 1.2 per cent while Westpac gained 1.4 per cent. Macquarie Group and Bendigo Bank also rose, closing 3.3 per cent and 1.9 per cent higher.

National Australia Bank appointed Nathan Goonan as its next chief financial officer, replacing Gary Lennon, who will retire later this year. Goonan will take up the key position of finance chief from July, and has been on NAB’s senior management team for three years as the group executive in charge of strategy and innovation.

The big mining heavyweights also drove market gains, with BHP lifting 1.3 per cent, Rio Tinto up nearly 1 per cent. Fortescue Metals Group surged by as much as 1.7 per cent during the day before finishing 0.1 per cent lower.

Incitec Pivot was also a key winner of the day, rising 3.9 per cent, after selling its American ammonia manufacturing plant in a $2.5 billion deal that gives it plenty of spare cash to execute a planned $400 million buyback and pay down debt.

Loading

Andrew Forrest’s privately owned Wyloo Metals also announced an on-market takeover of nickel miner Mincor for $1.40 a share – a 35 per cent premium to the previous closing price of $1.04 – valuing the group at $760 million. Wyloo currently owns 19.9 per cent of Mincor, which had a share surge of 42.3 per cent.

Meanwhile, law firm Maurice Blackburn said it was investigating a potential class action against Downer EDI after the company admitted to overstating its revenue, which triggered a share price plunge in December last year and again in February this year. The stock traded above $5 at the start of December and plunged to a low of $3 in February.

Maurice Blackburn Lawyers principal Miranda Nagy said: “Downer EDI investors have borne the brunt of what appears to be a significant accounting error, for which the company has given only limited explanation so far, notwithstanding that the chair, chief executive and chief financial officer have all recently departed the company.”

Overnight on Wall Street, the S&P 500 closed 0.9 per cent higher at 3951.57, with stocks in the financial industry helping to lead widespread gains. The Dow Jones Industrial Average jumped 1.2 per cent, while the Nasdaq composite ended the session 0.4 per cent higher.

Much investor attention has been on banks as they may be cracking under the pressure of the fastest flurry of increases to interest rates in decades.

All eyes on the Fed

Much of the rest of the US stock market was also pushing higher, but how long that lasts is a question mark. A huge decision is looming on the calendar by the Federal Reserve.

The US central bank will announce its latest move on interest rates on Wednesday [early Thursday AEDT]. For a while, Wall Street was betting it would re-accelerate its rises because of how stubbornly high inflation has remained.

Tweet of the day

Quote of the day

“Only about 35 per cent of Australian women colour their hair in a salon. A lot of people are getting their hair cut [with us] and then colouring their hair at home. People want to spend time with their family and friends instead.”

That’s budget haircut chain JustCuts group CEO Amber Manning who said value-hungry customers’ hair regimes had been changed by the pandemic.

You may have missed

The former head of Tesla’s Australian operations Kurt Schlosser was sentenced to two years and six months in prison after an insider trading conviction, but was released on a good behaviour bond for the two offences.

Schlosser was sentenced in the Sydney District Court before being released immediately upon entering into a recognisance, on the condition that he be of good behaviour for two years and six months.

With Colin Kruger, Clancy Yeates, AP