What you need2know

SPI futures up 60 points or 1.2% to 5153 at about 6am Sydney time

AUD at 74.36 US cents, 76.40 Japanese yen, 66.96 Euro cents and 55.38 British pence

On Wall St, Dow +1.6%, S&P 500 +1.7%, Nasdaq +1.9%

In Europe, Stoxx 50 +2.7%, FTSE +3.6%, CAC +2.6%, DAX +1.8%

In London, BHP +3.6%, Rio +3.9%

Spot gold +1% to $US1325.05 an ounce

Brent crude +3.3% to $US50.17 a barrel

Iron ore adds 0.5% to $US53.98 per tonne

What's on today

ABS Job Vacancies and RBA financial aggregates

Currencies

Fed won't lift rates until 2018, signal derivatives: Circle January 31, 2018, on the calendar. That's the soonest the Federal Reserve hikes next.

As for how the RBA will respond, here's what NAB economics think: "In terms of Australian monetary policy, our core view remains for the Reserve Bank to remain on hold although heightened global risks suggest a higher probability of a rate cut in coming months. A cut at the July meeting appears unlikely given the relatively orderly financial market movements to date and a desire to see how the dust settles. In addition, the RBA would prefer to have an up-to-date reading on inflation pressures, which suggests any upcoming cut would be more likely in August after the release of the Q2 CPI."

Commodities

The Bloomberg Commodity Index, which measures returns on raw materials, extended Tuesday's 1.9 percent rally with a 1 percent advance.

Gold recovered most of the previous session's losses, adding 1 percent to $1,325.27 an ounce on speculation that the Fed's interest rate policy will boost the precious metal's allure.

United States

US stocks advanced amid a global rally, with the S&P 500 Index posting its strongest two-day climb in four months. The S&P 500 rose 1.7 per cent to 2070.65 at 4pm in New York, after the biggest one-day rally since February on Tuesday. The gauge has erased its loss for the year after last week wiping out a 2016 advance of as much as 3.7 per cent.

Adding to the upbeat sentiment, data showed US consumer spending, which accounts for more than two-thirds of economic activity, increased 0.4 per cent in May.

Europe

European equities rose for a second day, recovering more of the declines triggered in the immediate aftermath of the UK's decision to leave the European Union.

The Stoxx Europe 600 Index climbed 3.1 per cent at the close of trading, with miners and energy producers as the best performers. Friday's shock vote for British secession sent the benchmark to its worst two-day rout since 2008, before yesterday's advance. The number of shares changing hands today was 45 per cent higher than the 30-day average.

In London, Britain's FTSE 100 closed at its highest level since April on Wednesday, as a two-day rally recouped the losses it suffered after Britain voted to leave the European Union.

What happened yesterday

Australian shares bounced back into positive territory on Wednesday as the gloom lifted from global markets and opportunists began to move in on heavily sold-off stocks.

The benchmark S&P/ASX 200 Index and the broader All Ordinaries Index each rose 0.8 per cent to 5142.4 points and 5221 points respectively.