Market hits back after poor start

THE Australian share market has recovered from a poor start to close higher, but most of the big banks still face some pressure after the Turnbull government’s budget announcement of a $6.2 billion levy on the big banks.

The banks fell heavily at the start of trade yesterday, dragging the overall market lower with them, but recovered some lost ground over the session.

IG chief market strategist Chris Weston said gains among resources stocks pushed the Australian bourse into positive territory.

Mr Weston said the Turnbull government’s budget was seen as market friendly, and market reaction to it had been modestly positive.

“But I don’t think anyone is sitting there going ‘this is fantastic’,” he said.