The sharemarket recovered 0.7 per cent today with banks and miners leading as Wall Street rebounded overnight after the Federal Reserve Chairman Ben Bernanke defended the central bank's bond-buying programme. Financials underpinned the market, with the Commonwealth Bank of Australia posting the largest gain, rallying 0.8 per cent. Westpac Banking bucked the trend, slipping 0.1 per cent. Blue chip miners BHP Billiton and Rio Tinto were up 0.9 per cent and 0.7 per cent respectively. A powerful cyclone headed for Australia's Port Hedland, which has brought shipping of half the world's seaborne-traded iron ore to a halt, intensified and is set to make landfall late on Wednesday, threatening to flood inland mine operations and rail links. The S&P/ASX 200 index finished the day 33 points higher at 5,036.6. The benchmark lost 1 per cent on Tuesday. "With events in the US overnight providing peace of mind, the Australian index was again able to make forward progress," said Tim Waterer, senior trader at CMC Markets. Mining contractor Macmahon Holdings slumped 2.9 per cent after it said shareholders had approved the sale of its construction business to Leighton Holdings Ltd. Leighton Holdings Ltd added 0.4 per cent. Defensives helped lead the index higher. Blood products maker CSL climbed 1 per cent. Top telecoms provider Telstra added 0.4 per cent. Retailer Wesfarmers gained 1 per cent while rival Woolworths edged up 0.2 per cent. AGL Energy soared 4.5 per cent after Australia's second-largest electricity and gas company posted a 20 per cent rise in first-half profit as it attracted more customers and power prices rose. Insurers recovered as QBE Insurance Australia jumped 3.4 per cent and Insurance Australia Group Limited climbed 2.7 per cent. Suncorp bucked the trend, dropping 0.8 per cent. Shopping centre operator Westfield Group rose 0.5 per cent, after it reported 2012 results in line with expectations. US stocks rebounded from their worst decline since November on Tuesday after Federal Reserve Chairman Ben Bernanke defended the Fed's bond-buying stimulus and sales of new homes hit a 4 1/2-year high.