Shares jump 1pc in early trade

THE share market opened more than one per cent higher, after falling almost three per cent on Friday, following gains on European bourses. At 10.16am AEDT, the benchmark S&P/ASX200 index was up 70.6 points, or 1.54 per cent, at 4642.7 while the broader All Ordinaries rose 64.2 points, or 1.4 per cent, to 4661.4.

The gains were broad-based, with 48 of the stocks in the S&P/ASX 50 rising.

The big four banks all gained over two per cent after Commonwealth Bank became the last of them to say that it does not expect to incur a material loss from its financial exposure to Dubai World.

ANZ Banking Group gained 51 cents, or 2.41 per cent, to $21.70, National Australia Bank added 64 cents to $27.65, Westpac advanced 54 cents $23.67 and Commonwealth Bank rose 98 cents to $51.58.

Macquarie Group was among the leading gainers, adding $1.31, or 2.89 per cent, to $46.65.

The big miners also added to gains, with BHP Billiton advancing 72 cents, or 1.78 per cent, to $41.11 and Rio Tinto rising $1.81, or 2.64 per cent, to $70.36.

Fortescue Metals jumped 15 cents, or 3.74 per cent, to $4.16.

On Friday, Europe's leading stock indices closed higher, reversing earlier sharp losses driven by a shock debt announcement in Dubai that alarmed markets worldwide.

US shares dropped because they had been closed the previous day when the reports of Dubai's debt problems became public.

Stocks decline in early morning tradingBank hammered 3pc on Dubai worries