Australia's sharemarket has surged recouping much of ''Black Friday's'' devastating losses but investors are being warned to remain cautious.
The All Ordinaries closed up 202 points to 4141.9 today, a gain of almost five per cent.
"The main action is in the financials on the back of the positive news coming out from the government and the concerted effort globally that they'll protect bank guarantees," Ord Minnett private client adviser Tony Chidiac said.
Mr Chidiac said there was no guarantee that the market would stay on positive turf.
"We've seen this before. The market's still very sceptical. Details (of the rescue plans) are yet to come out.
"We saw the futures (market) up quite substantially and then come off."
Mr Chidiac said Asian markets may not share Australian investors' optimism.
Channel Nine's finance editor Ross Greenwood has told 2GB's Philip Clark investors still need to be extremely cautious.
"All these thing now in hindsight look like screaming bargains but wait, because you still haven't seen Wall Street react, until we really see what takes place at the heart of the problem."
"And that is where it all began, because ultimately, remember that if US banks don't lend to the rest of the world then the rest of the world still has a credit crisis on its hands."
The Australian dollar hasn't performed as strongly, currently buying 66.15 US cents.