STOCKS

THE Australian sharemarket closed slightly higher after easing back from an earlier peak.

Investors were encouraged by a positive lead from United States markets and prospects of another cut to interest rates in Australia.

Yesterday, the benchmark S&P/ASX200 index gained 8.1 points, or 0.18 per cent, to 4491.5 points, while the broader All Ordinaries index rose 8.4 points, or 0.19 per cent, to 4513.9 points.

On the ASX 24, the December share-price index futures contract was 11 points higher at 4492 points, with 30,275 contracts traded.

OptionsXpress market analyst Ben Le Brun said Australian investors appeared to be cautiously optimistic yesterday.

‘‘We’re not seeing an aggressive amount of short-selling and not a lot of profit-taking either,’’ he said.

‘‘The market definitely has impetus to move higher, going closer to Christmas, but investors just need a few more questions in the macro (macro-economic) picture answered at this stage.’’

Financial stocks led the market, as investors chased dividend yields in that sector but resources dragged the chain.

Mr Le Brun said the market had been encouraged by the minutes of the Reserve Bank of Australia’s last board meeting, on October 2, which were released yesterday.

He said investors were still focused on Spain’s debt problems and would be looking to China’s economy for guidance.