Shares higher at noon as banks gain

THE share market had extended its gains by noon, boosted by banking and commodity stocks, and following a positive lead from world markets overnight. At 12.11pm (AEDT), the benchmark S&P/ASX200 index was up 42.3 points, or 0.89 per cent, at 4,782.1, while the broader All Ordinaries had gained 40.4 points, or 0.86 per cent, at 4786.1.

On the Sydney Futures Exchange, the December share price index contract was 35 points higher at 4793, on a volume of 9168 contracts.

RBS Morgans private client adviser Craig Walker said a positive lead from European and US markets was helping to buoy local stocks.

"The market opened up pretty strongly and is still performing quite well, thus far," Mr Walker said.

"The main contributors today are the four major banks, and also BHP Billiton, Rio Tinto, Newcrest Mining and Lihir Gold."

Mr Walker said he expected the local market to remain strong for most of the day.

"Any real dips in the market seem to be met with fairly strong buying," he said.

In resources, BHP Billiton was up 29 cents at $38.18 and Rio Tinto gained 70 cents to $62.00.

At 12.13pm (AEDT), the spot price of gold in Sydney was $US1051.20 per fine ounce, up $US1.28 on Monday's closing price of $US1049.92.

Lihir was up nine cents at $3.23 and Newcrest Mining rose 96 cents to $36.30.

Among the major banks, ANZ was up 45 cents at $24.66, AB added 40 cents to $31.41, Westpac lifted 37 cents to $26.21, and Commonwealth Bank was $1.03 higher at $53.67.

US and European stock markets rose on Monday amid mounting hopes that third-quarter earnings results will provide more evidence the world economy is enjoying a solid recovery.

In the US, the Dow Jones Industrial Average gained 20.86 points, or 0.21 per cent, to 9885.8.

The Nasdaq composite lost 0.14 points, or 0.01 per cent, to 2,139.14 and the broad-market Standard & Poor's 500 index added 4.70 points, or 0.44 per cent, to 1076.19.

Stocks appear headed to sharply higher openingResources, banks push market higher