A confluence of upbeat vaccine news, earnings upgrades and solidly improved economic data has set the sharemarket up for a strong finish to 2020, with the S&P/ASX 200 Index on track for its best month on record if it can hold onto its gains.

The benchmark index fell 0.1 per cent to 5349.2 on Friday, but still remains 10.4 per cent higher for November.

Promising results from two separate vaccine trials have incited optimism from the equity market, boosting the recovery stocks that were slammed on the way down. Better than expected labour force data following a flurry of positive earnings revisions through the AGM season lends further credence to the market's rally.

"We’re coming home strong in 2020," said AMP Capital portfolio manager Dermot Ryan. "I think from a bottom-up perspective, we’ve seen some strong AGM guidance upgrades coming through in the last few weeks.

"Those re-opening trades are all benefiting as we get back to normal and demand can increase. The vaccine trade has just put a rocket under that."

Read more about the sharemarket's big month here.