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Banks and miners drive share market's gain

Petrina Berry
AAP

The share market has closed higher for a second consecutive session, due to strong gains by the banks and miners.

The benchmark S&P/ASX200 index rose 0.6 per cent to 5,746.4 points following a lift in global sentiment, illustrated by the second best gains of 2017 on Wall Street.

Reports that Hurricane Irma has not been as devastating as first feared, and the fact North Korea did not test a missile over the weekend as some had speculated, created a risk-on mood, optionsXpress market analyst Ben Le Brun said.

"There was a relief rally on the back of North Korea and Hurricane Irma in the US and we are riding their coat tails," Mr Le Brun said.

"There's been a nice bounce back in the banks and miners due to the risk-on environment but not all sectors have had their shoulder to the wheel today; those being the consumer staples, telcos, energy and utilities."

The Australian dollar fell to a low of 79.98 US cents on Tuesday morning, but was back at 80.37 US cents at 1700 AEST, where it was 24 hours earlier.

Shares in the mining sector were boosted by higher base metal prices, with Rio Tinto up 1.9 per cent at $68.80, BHP Billiton gaining 1.2 per cent to $27.12 and Fortescue Metals was 1.6 per cent higher at $5.90.

Gold miners were weaker after a fall in the precious metal's price, with Newcrest down 1.9 per cent to $22.21 and Evolution Mining dropping 2.7 per cent to $2.53, as it confirmed it has received interest in its Edna May mine in Western Australia.

Among the banks, Commonwealth Bank led gains with a rise of 2.3 per cent to $75.92, while ANZ gained 1.4 per cent to $29.90, Westpac added one per cent to $31.65 and National Australia Bank was 0.8 per cent higher at $30.76.

QBE gained 2.5 per cent to $10.50 after it announced chief executive John Neal will step down at the end of the year and will be replaced by the head of the company's Australian and New Zealand unit.

ON THE ASX:

* At the close, the benchmark S&P/ASX200 was up 33.3 points, or 0.58 per cent, at 5,746.4 points.

* The broader All Ordinaries index was up 31.3 points, or 0.54 per cent, at 5,806.4 points.

* The September SPI200 futures contract was up 40 points, or 0.7 per cent, at 5,745 points.

* National turnover was 3 billion securities traded worth $5.8 billion.

CURRENCY SNAPSHOT AT 1700 AEST:

One Australian dollar buys:

* 80.37 US cents, steady from Monday

* 88.03 Japanese yen, from 87.23 yen

* 67.11 euro cents, from 66.94 euro cents

* 60.92 British pence, from 60.94 pence

* 110.40 NZ cents, from 110.83 NZ cents

GOLD:

The spot price of gold in Sydney at 1700 AEST was $US1,326.29 per fine ounce, from $US1,335.50 per fine ounce on Monday.

BOND SNAPSHOT AT 1630 AEST:

* CGS 4.50 per cent April 2020, 1.9149pct, from 1.9029pct

* CGS 4.75pct April 2027, 2.5901pct, from 2.5543pct

Sydney Futures Exchange prices:

* September 2017 10-year bond futures contract at 97.36 (implying a yield of 2.64pct), from 97.397 (2.603pct) on Monday

* September 2017 3-year bond futures contract at 97.995 (2.005pct), from 98.01 (1.99pct).

(*Bond market closes taken at 1630 AEST previous local session; currency closes taken from 1700 AEST previous local session)