UPDATE 7.20am: The Australian sharemarket has opened more than 2.5 per cent higher in response to a positive session on Wall Street prompted by a co-ordinated move by the world's central banks.

At 7.24am, the benchmark S&P/ASX200 index was up 112.3 points, or 2.73 per cent, at 4232.1 points, while the broader All Ordinaries index had risen 107 points, or 2.56 per cent, to 4291.7 points.

On the ASX 24, the December share price index futures contract was 129 points firmer at 4,243 points, with 16,932 contracts traded.

Wall Street rallied strongly as investors cheered initiatives from a number of central banks to lower short-term borrowing rates to banks.

Bell Potter senior adviser Stuart Smith said the offshore rally had been the catalyst for the local market.

The positive start had pushed the Australian bourse through some significant technical levels, and was also supported by the underlying strength of the Australian economy.

“You get your left brain looking at the technicals and you get your right brain looking at the fundamentals here in Australia and it is a happy situation,” Mr Smith said.

The best performing sector was metals and minerals, up 4.01 per cent, according to Iress data.

Materials stocks were up 3.92 per cent, and financials were 2.74 per cent higher.

In New York, the Dow Jones industrial Average climbed 4.24 per cent, the S&P500 advanced 4.33 per cent and the NASDAQ soared 4.17 per cent.

Benchmark futures contact prices for key commodities such as oil, gold and copper were all firmer in offshore trading.

The spot price of gold in Sydney was at $US1749.40 per fine ounce, up $US26.80 from yesterday's local close of $US1722.60 per ounce.

Making news, industrial services company Spotless said it had received an increased takeover bid from private equity group Pacific Equity Partners.

The revised bid included an indicative price of $2.68 per Spotless share, up from the previous offer of $2.63 per share.

Spotless had said the first offer, made last month, was too low.

Spotless shares were in a trading halt at $2.29.

They will resume trading at 8am.

National turnover was 462.5 million securities worth $1 billion, with 607 stocks up, 114 down and 196 unchanged.