Trade talk hopes lift market

THE Australian sharemarket finished higher yesterday amid optimism for a deal on the US-China trade war and a spike in the price of oil.

The ASX200 closed up 23.7 points, or 0.39 per cent, at 6089.8, while the All Ordinaries was up 22.1 points, or 0.36 per cent, at 6170.7.

“It’s been a pretty solid start to the new week,” said Comm- Sec market analyst James Tao, who cited optimism over the US-China trade talks, which resume in Washington this week.

A rise in the price of oil, of more than 2 per cent to nearly $US56, also helped the energy sector, which led gains.

Santos, Beach Energy, Origin Energy and Woodside Petroleum closed up between 1.19 per cent and 3.18 per cent.

The big four banks were flat while the Bank of Queensland dropped 6.33 per cent after saying it expected its earnings for the half-year to drop between 6 and 9 per cent.

Mining giant BHP added 1.45 per cent while Rio Tinto rose 1.42 per cent and Fortescue Metals was up 1.59 per cent.