The S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) has recovered 0.6% today following yesterday's horror slide with the same companies that pulled the market into a "technical correction" dragging it straight back out again.
BHP Billiton Limited (ASX: BHP) and Rio Tinto Limited (ASX: RIO) crumbled in price yesterday as a result of the severe devaluation of China's currency but have rebounded today.
The Chinese port of Tianjin saw a series of fatal explosions today. It is home to the country's biggest port in the northern part of the country which handles shipments of various goods including iron ore and oil. The explosions led to a 3% rise in iron ore futures early in the session, according to the Fairfax press, which has driven a relief rally for the two miners.
BHP Billiton and Rio Tinto Limited have lifted 2.3% and 1.3% respectively, while the nation's third biggest iron ore miner, Fortescue Metals Group Limited (ASX: FMG), is up 1.7%. The gains have also been widespread throughout the energy sector with Woodside Petroleum Limited (ASX: WPL) and Santos Ltd (ASX: STO) up 2.5% and 3.1%, respectively.
Meanwhile, the nation's Big Four banks have also recovered from yesterday's losses with Australia and New Zealand Banking Group (ASX: ANZ) and National Australia Bank Ltd. (ASX: NAB) up 1.3% each. Westpac Banking Corp (ASX: WBC) has also risen 1.7%, while Commonwealth Bank of Australia (ASX: CBA) remains in a trading halt, pending the completion of the institutional component of its capital raising.
Despite today's gains however, there are plenty of companies that are still trading deep in the red. Telstra Corporation Ltd (ASX: TLS) fell 1.9% after its full-year earnings result, while Computershare Limited (ASX: CPU) and Crown Resorts Ltd (ASX: CWN) also plunged 4.6% and 3.9%.
While short-sighted investors are no doubt still reluctant to wade into the sharemarket given its recent volatility, long-term investors are recognising the fantastic opportunities facing them. Indeed, there are plenty of them right now, provided that you know where to look…
