ASX 200 closes 1.3% higher, driven by financial and travel stocks ahead of international borders reopening

The ASX 200 has closed 1.3 per cent higher, driven by Commonwealth Bank and other financial stocks. Flight Centre was the top performer, up 9.6 per cent.

Australian stocks have been on a rollercoaster. Picture: NCA NewsWire / Gaye Gerard

Welcome to the Trading Day blog for Monday, October 4. The ASX 200 closed 1.3 per cent higher on light trading volumes, due to the public holiday in NSW, QLD, SA and ACT.

The Australian share market finished 1.3 per cent higher, driven by financials and travel stocks.

US share markets rebounded on Friday after investors were encouraged by progress on an infrastructure spending bill as well as US economic data.

The Dow Jones index rose by 483 points or 1.4 per cent while the S&P 500 index rose by 1.2 per cent. The Nasdaq index lifted by 118 points.

On the data front in the week ahead, the Reserve Bank holds its monthly board meeting on Tuesday, while US jobs figures, due Friday, will be closely watched.

The strong start in local share market comes after the S&P/ASX 200 slumped 2 per cent on Friday to a four-month low of 7185.5 points, down more than 2.1 per cent for the week.

Iron ore fell by $US1.25 a tonne or 1.1 per cent to $US117.00 a tonne, but up 6 per cent over the week.

Originally published as ASX 200 closes 1.3% higher, driven by financial and travel stocks ahead of international borders reopening