Investors are enjoying a good run in every sector of the Australian share market after a positive lead from Wall Street earlier.
The S&P/ASX200 benchmark index was higher by 102.4 points, or 1.72 per cent, to 6053.7 at 1200 AEDT on Tuesday.
The All Ordinaries was up 106.2 points, or 1.72 per cent, to 6253.6.
The energy sector was the best performer, higher by 4.85 per cent, after investors liked an asset sale between Beach Energy and Senex Energy.
Information technology was up 3.09 per cent.
Among the largest sectors, materials gained 1.91 per cent and financials rose 1.27 per cent.
Earlier, US markets closed higher after more companies reported stronger profits than Wall Street feared and as reports on manufacturing came in better than expected.
The main event on the finance calendar on Tuesday is the expected rate cut by the Reserve Bank.
The board is tipped to reduce the cash rate from the record low of 0.25 per cent to 0.1 per cent to try and further stimulate the economy in the coronavirus recession.
The Reserve Bank is also keen to lower the value of the Australian dollar to make Aussie goods and services cheaper and help exporters.
The ANZ-Roy Morgan consumer confidence index rose for a ninth straight week, rising 0.2 per cent to 99.9 points, its highest level since March and when the pandemic struck.
Consumer confidence is a pointer to future household spending.
However, the latest overall weekly reading disguised a concerning shift with the sub-index for “current financial conditions” falling by more than six per cent.
This was the biggest weekly decline since the extreme weakness in March.
Meanwhile, Chinese trade strikes on Australian exports have spread to timber and barley.
Agriculture Minister David Littleproud has confirmed China has suspended exports of Australian logs from Queensland and barley from another grain producer.
The suspensions follow customs clearance delays for $2 million worth of live Australian rock lobsters stuck on a Chinese airport tarmac.
On the ASX, Beach Energy will buy oil and gas assets in South Australia’s Cooper Basin from Senex Energy in a $87.5 million deal.
Beach and Senex have been joint-venture partners in an oil-producing region of the basin called the western flank, but Senex wants to focus on its gas assets on the east coast.
Beach shares were up 8.04 per cent to $1.24, while Senex shares gained 7.01 per cent to 30 cents.
Shares in freight provider Brambles increased 5.8 per cent to $10.11 after the company improved its earnings guidance.
Brambles said underlying profit growth would be between three and five per cent for the financial year.
Among the miners, BHP rose 2.04 per cent to $34.50, Rio Tinto gained 2.12 per cent to $94.47 and Fortescue was better by 0.84 per cent to $17.35.
In banking, ANZ rose 1.66 per cent to $19.58, the Commonwealth gained 1.29 per cent to $69.76, NAB crept up 0.85 per cent to $18.98 and Westpac lost 0.16 per cent to $17.77.
In the US earlier, the S&P 500 rose 40.28 points to 3,310.24. The Dow Jones Industrial Average gained 423.45 points, or 1.6 per cent, to 26,925.05. The Nasdaq composite picked up 46.02 points, or 0.4 per cent, to 10,957.61.
The gains came the day before the US election, which is expected to have considerable effects on stock performance.
The Aussie dollar was buying 70.53 US cents at 1200 AEDT, higher from 70.06 US cents at the close of trade on Monday.