The local share market has finished higher, with the banking sector again leading the way.
The benchmark S&P/ASX200 index on Tuesday finished up 23.8 points, or 0.3 per cent, to 8,011.9, while the broader All Ordinaries gained 25.1 points, or 0.31 per cent, to 8,217.0.
Moomoo analyst Jessica Amir said investors were breathing a sigh of relief after the US market overnight rose for the first time in September, driven by dip-buyers, stabilising US inflation expectations and a series of better-than-expected corporate announcements.
Capital.com analyst Kyle Rodda likened recent market volatility to a car fishtailing, with its rear end swinging one way then the other as the driver tried to correct.
"We are now waiting to see whether the car eventually straightens out or spins off the road," Mr Rodda wrote.
The price action would likely persist until at least next week's Federal Reserve decision on interest rates and could drag on longer if expectations of recession deepen, he said.
Closer to home, NAB's monthly business survey of 400 firms showed conditions dropped back below average in August after a brief uptick in July, with confidence sinking into negative territory.
"Conditions are now fairly clearly below average compared to the history of the survey, which reflects the weakness seen in the private sector broadly as the economy has slowed," NAB chief economist Alan Oster said.
Another survey of 1,200 Australian adults conducted last week - the Westpac-Melbourne Institute Consumer Sentiment Index - was released Tuesday and found Australians are still pessimistic about the economy.
Westpac economist Matthew Hassan said while cost-of-living pressures had become a little less intense, consumers had grown more concerned about where the economy was headed and what that might mean for jobs.
Nine of the ASX's 11 sectors finished higher, with property basically flat and materials down 0.3 per cent.
Three of the four big banks finished higher, with Commonwealth Bank again hitting an all-time high after climbing 0.6 per cent to $143.77.
Westpac rose 1.4 per cent to nearly seven-year high of $32.31 and NAB edged up 0.1 per cent at $38.95, while ANZ dipped 0.4 per cent to $31.40.
Macquarie climbed 1.6 per cent to an all-time high of $227.36.
Steadfast Group was the worst performer in the ASX200, dropping 10.7 per cent to a 10-month low of $5.23 as its shares resumed trading after a one-day pause so it could respond to an investigation by ABC's Four Corners program alleging the company paid kickbacks to strata management firms that bought its insurance policies.
Steadfast said it held itself to high professional and ethical standards and rejected any suggestion its businesses operated unethically or improperly channelled work to related entities.
Elsewhere, the heavyweight mining sector dropped 0.3 per cent. BHP fell 0.3 per cent to $38.66, Fortescue retreated 2.0 per cent to $15.88 but Rio Tinto added 0.3 per cent to $107.11.
Bown Coal had plunged 22 per cent to 70c before its shares were halted so the coking coal producer could answer an ASX price and volume query.
In tech, Life360 dropped 8.1 per cent to a one-month low of $17.03 after a company director reported he had sold shares worth $3.7 million.
In energy, Paladin rose 5.7 per cent to a one-week high of $8.86 after shareholders in Canada-based Fission Uranium approved its acquisition by Paladin.
The Australian dollar was buying 66.73 US cents, from 66.70 US cents at Monday's ASX close.
ON THE ASX:
* The benchmark S&P/ASX200 index finished Tuesday up 23.8 points, or 0.3 per cent, at 8,011.9
* The All Ordinaries gained 25.1 points, or 0.31 per cent, at 8,217.0.
CURRENCY SNAPSHOT:
One Australian dollar buys:
* 66.73 US cents, from 66.70 US cents at Monday's ASX close
* 95.43 Japanese yen, from 95.40 Japanese yen
* 60.40 euro cents, from 60.28 euro cents
* 50.98 British pence, from 50.90 pence
* 108.35 NZ cents, from 108.39 NZ cents
