ASX on track for record high as energy, banks stocks rally

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The Australian sharemarket flew higher, on track to close at a record high, led by a rally in energy stocks as the oil price climbed amid ongoing trades talks between the US and China in London.

The S&P/ASX 200 Index rose 74.3 points, or 0.9 per cent, to 8590 by lunchtime as nine out of 11 sectors climbed, surpassing the record high set at the close on February 14 of 8555.8. The Australian dollar flirted with a fresh six-month high at US65.25¢.

The S&P 500 inched higher at the close as delegates met for more than six hours overnight with further talks due later today. US President Donald Trump said the talks were positive but “not easy”, while US Commerce Secretary Howard Lutnick said the discussions were “fruitful” and Treasury Secretary Scott Bessent cited a “good meeting”.

That was enough to boost investor sentiment, pushing stocks higher across the board. Energy stocks tracked a higher oil price, with both Woodside Energy and Santos rallying more than 1 per cent. Banks were also well bid, with index heavyweight Commonwealth Bank leading the big lenders higher, rallying 1.2 per cent.

Stocks on the move

On the other side of the ledger, gold miners fell on the back of the US-China talks that pushed bullion lower to around $US3,320 an ounce. Evolution, Genesis and Newmont all dropped more than 2 per cent.

In corporate news, Monash IVF had sunk 23.9 per cent after reporting a second IVF embryo incident this year. The shares are now down by more than 55 per cent in the last 12 months.

Austal jumped 6.8 per cent after South Korea’s Hanwha Group was given approval by foreign investment officials in the United States to buy out the entirety of Australia’s largest shipbuilder.

And Johns Lyng Group has requested a trading halt pending the release of an announcement. Street Talk reported earlier that the property services business has received a takeover approach from Pacific Equity Partners. The stock last traded at $2.54.