View from the cliff positive for shares
At the close on Tuesday, the benchmark S&P/ASX 200 Index was up 21.8 points, or 0.48 per cent, at 4595.2 points, while the broader All Ordinaries index had risen 22.5 points, or 0.49 per cent, to 4610.5 points.
On the ASX 24, the December share price index futures contract was 29 points higher at 4602 points, with 167,860 contracts traded.
Australian Stock Report head of research Geoff Saffer said the Australian market had its highest close since late July 2011 after US politicians appeared to be making progress on their "fiscal cliff" negotiations.
Just two weeks remain before tax increases and government spending cuts, referred to as the fiscal cliff, start taking effect in the US if no deal is reached.
"I think it was mainly widespread buying today on hopes that US politicians will reach a compromise before the end of the year," he said.
Mr Saffer said the Reserve Bank of Australia's minutes of its December board meeting also suggested that the cash rate could be cut further in 2013, which prompted investor buying.
The Australian market recorded gains across the board, with mining, utilities and healthcare the best performing sectors - BHP Billiton jumped 31¢ to $36.66, Rio Tinto soared $1.18 to $64.70 and Fortescue gained 13¢ to $4.60.
Uranium miners rallied for a second session, boosted by the pro-nuclear Liberal Democratic Party's election landslide in Japan.
Paladin Energy jumped 12.4 per cent to $1.08, helped by an upgrade from UBS analysts to buy, while ERA Resources rose 7.3 per cent to $1.33.
Toro Energy shares fell 4.4 per cent when the Western Australian government delayed a decision on the Wiluna uranium project until March.
The four major banks all finished in positive territory.
ANZ was up 2¢ at $24.51, National Australia Bank gained 12¢ to $24.60, Westpac added 6¢ to $25.81 and Commonwealth Bank jumped 16¢ to $61.45.
The spot price of Sydney gold closed at $US1702.59, up $US10.84 from Monday's close of $US1,691.75.
Market turnover was 1.77 billion securities worth $4.99 billion, with 536 stocks up, 434 down and 352 unchanged.
The dollar was virtually unchanged and trading in a very tight range as markets awaited developments in US debt talks.
At 5pm on Tuesday, the currency was trading at US105.34¢, down a touch from US105.35¢ on Monday afternoon.
Frequently Asked Questions about this Article…
The Australian sharemarket reached a 16-month closing high as the S&P/ASX 200 rose 21.8 points (0.48%) to 4,595.2. Investors were encouraged by apparent progress in US budget negotiations over the 'fiscal cliff' and positive signals from the Reserve Bank of Australia minutes that the cash rate could be cut further in 2013.
Hopes that US politicians would reach a compromise on looming tax increases and spending cuts boosted risk appetite globally and led to widespread buying on the ASX. Market participants viewed progress in the US budget talks as reducing near-term economic uncertainty, helping lift Australian shares.
Mining, utilities and healthcare were the best-performing sectors. Major miners outperformed: BHP Billiton rose 31 cents to $36.66, Rio Tinto jumped $1.18 to $64.70, and Fortescue added 13 cents to $4.60.
Uranium miners rallied after Japan's pro-nuclear Liberal Democratic Party won a landslide election, lifting hopes for increased nuclear demand. Paladin Energy jumped 12.4% to $1.08 (helped by a UBS upgrade), ERA Resources rose 7.3% to $1.33, while Toro Energy fell 4.4% after Western Australia delayed a Wiluna project decision until March.
All four major banks finished positive: ANZ rose 2 cents to $24.51, National Australia Bank gained 12 cents to $24.60, Westpac added 6 cents to $25.81, and Commonwealth Bank jumped 16 cents to $61.45.
The Sydney spot gold price closed at US$1,702.59, up US$10.84 from Monday's US$1,691.75. A rising gold price can reflect safe-haven demand or commodity strength and is relevant for investors with exposure to gold producers or bullion.
Market turnover was 1.77 billion securities worth A$4.99 billion. Breadth was positive with 536 stocks up, 434 down and 352 unchanged, indicating broad-based buying across the market.
The Australian dollar was virtually unchanged and trading in a very tight range as markets awaited US debt developments. At 5pm the currency traded at US105.34 cents, a touch down from US105.35 cents the previous afternoon.
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