Bourse jumps 2%

Investors piled back into the sharemarket en masse on Friday after a rally on Wall Street and a rise in metal prices spurred on resource companies - pushing stocks to their biggest one-day gain in more than three years.
Since Tuesday, when the market had its biggest single-day fall since the aftermath of the terrorist attacks on September 11, 2001, the market has overcome the panic selling to surge 2.7 per cent.
Despite the bounce in the market, brokers and fund managers warn the volatility in equities here and overseas could last until October because of continued uncertainty over global interest rates.
The benchmark ASX 200 index rose 99.3 points to 4969 on Friday, or just over 2 per cent. For the week the index was up 3 points over the four trading days. The broader All Ordinaries rose 96.7 points to 4932.2 on the day and 5.4 points over the week.
The market has priced in an interest rate rise in the US at the end of the month as the Federal Reserve takes a combative approach to inflation but uncertainty remains over whether the central bank will act again this year.
The heavyweight miners led the charge on Friday as investors eyed buying opportunities. Prices for major metals, including zinc and copper, had earlier risen up to 6 per cent in London.
BHP Billiton posted its biggest one-day rise in almost four years, soaring 5.5 per cent, or $1.43, to $27.43, and up 2.6 per cent over the week. Rio Tinto jumped almost 5 per cent, or $3.53, to $76.90 on Friday, up more than 4 per cent over the week.
Other resource companies were among the biggest winners of the week, including Hardman Resources, which rose about 11 per cent over the four trading days. The stock closed up 12c at $1.66 on Friday.
Shaw Stockbroking's head dealer, Jamie Spiteri, said the recovery on Friday mirrored rises on Wall Street and in Europe, where Britain's FTSE and Germany's DAX both rose more than 2 per cent.
"It's a significant move here but not at all surprising," he said. "There is a lot more of a wary optimism in the market despite the fact it's … recovered over the last two days."
Wall Street's blue-chip index, the Dow Jones, rose almost 200 points on Thursday night after reassurances about inflation from the Federal Reserve's chairman, Ben Bernanke.
Other Asian markets outperformed the local indices on Friday. Japan's Nikkei index and Hong Kong's Hang Seng both soared more than 2.5 per cent.
Mr Spiteri said the local market's rebound had been "exceptionally sharp" because of the huge amounts of cash in the hands of fund managers, who had been waiting for a pullback in equities.
"It's unique times - the weight of money directed towards … the Australian market is at record highs," he said.
Although some investors have anticipated the end of the correction, Wallace Funds Management's portfolio manager Michael Birch said volatility was set to continue for the next few months because of the uncertainty over global interest rates.
"From a retail point of view, there are plenty of people with cash who are happy to buy on the dips," he said. "If you are just buying back on the dip, as a long-term holder you are probably doing pretty well."
AMP Capital Investors' head of investment strategy and chief economist, Shane Oliver, said the worst might be over for the equities market but he expected further volatility until October.
"It will take a while for current inflation, interest rate and growth fears to fade completely and for investors to fully regain their confidence," he said.