The sharemarket snapped a two-day losing streak as investors bet that scheduled trade talks with the US this week and fresh stimulus from China and could aid a revival in the world’s second-largest economy.

The S&P/ASX 200 Index rose 26.9 points, or 0.3 per cent, to 8178.3 at the market close, shrugging off a weak lead from Wall Street ahead of a key rate decision from the US Federal Reserve overnight.

The All Ordinaries also finished up 0.3 per cent. Nine of 11 sectors were in the green, led by energy stocks.

“Investors are taking money out of more defensive sectors like healthcare and buying into the sectors that might do well in the next run that happens – if we see a US-China trade deal,” said Jessica Amir, a market strategist at trading platform MooMoo.

The US and China have agreed to start trade negotiations, lifting optimism for an easing in the trade war between the world’s two largest economies. US Treasury Secretary Scott Bessent is expected to meet senior Chinese officials in Switzerland on Thursday.

Also helping sentiment was a move by China’s central bank to reduce the reserves that banks must hold by half a percentage point – unleashing about 1 trillion yuan ($212 billion) in liquidity. It also cut rates on the seven-day reverse repurchase agreements by 0.1 of a percentage point.

The news has helped push oil and iron ore prices higher on hopes that lower tariffs would bolster demand for commodities.

Brent pushed near $US63 a barrel and spurred a rally in Woodside and Santos, which jumped 1.7 per cent to $20.27 and 2 per cent to $6, respectively. Iron ore producer BHP rose 0.7 per cent to $37.93.

The market’s ‘next run’

Banks also lifted the index after National Australia Bank reported first-half cash earnings that beat expectations despite its underlying net interest margin falling. The shares rose 1.6 per cent to $35.87, while ANZ and Macquarie posted modest gains. Commonwealth Bank dipped 0.5 per cent to $165.96.

Profit-taking in the more defensive areas of the sharemarket such as healthcare and utilities moderated some of the advance. Telix Pharmaceuticals dropped 3.4 per cent to $27.10, biotech giant CSL slid 3 per cent to $242.98, and power company AGL retreated 1.5 per cent to $10.77.

Stocks in focus

In corporate news, Nuix tumbled 16 per cent to $1.99 after withdrawing full-year guidance for revenue growth and underlying cash flow, reporting that customers were holding off committing to new IT contracts.

Boss Energy rose 12.4 per cent to $3.98 after telling investors at the Macquarie Australia Conference that it was well-positioned to benefit from the rising price of triuranium octoxide.

Temple & Webster jumped 8 per cent to $18.60 after telling investors it expected its full-year earnings margin to hit the top end of guidance.

Zip Co jumped 13 per cent to $1.83 after telling investors at the Macquarie conference that its 2025 cash earnings target of $153 million marked a “significant turnaround” on the prior two years.