The Australian sharemarket started the week on a strong footing bolstered by optimism that the longest government shutdown in US history would end in the coming days after the Senate advanced a funding bill.

The S&P/ASX 200 index rallied 66.2 points, or 0.8 per cent, to 8835.90 on Monday, its biggest advance in four weeks, as political developments in the world’s largest economy pushed the Nasdaq futures up more than 1 per cent higher.

IG market analyst Tony Sycamore said the US reopening would restore critical services and eases economic uncertainty which would be welcomed by financial markets.

Out of the 11 ASX sectors, nine ended in the green, led by technology. Life360 was among the top performers, climbing 3.6 per cent to $48.32. WiseTech Global rallied 6.2 per cent to $70.25, and Codan added 1.4 per cent to $34.08.

Hopes for an end to the US government shutdown lifted oil prices above $US64 a barrel, boosting Woodside 1.2 per cent higher to $26.14.

Gold miners were also buoyed as the precious metal jumped 1.1 per cent to $US4043.77 an ounce on expectations of another US Federal Reserve interest rate cut in December.

That’s because the American shutdown is taking a growing toll on the economy, as government employees are not being paid, and funding for infrastructure projects is halted. Moreover, the central bank is flying blind due to limited economic data being released.

Evolution Mining gained 3.9 per cent to $11.08, Perseus Mining advanced 3.9 per cent to $5.02, and Northern Star lifted 3.5 per cent to $25.19.

In the financial sector, the major banks were mixed. ANZ shares soared to a record high of $37.98, jumping 3.2 per cent despite the bank reporting a drop in its cash profit and missing analyst forecasts.

This rally occurred on the same day ANZ docked former chief executive Shayne Elliott’s bonus following a record $243 million ASIC fine. Elswhere in the sector, Westpac rose 1.4 per cent to $39.52, while Commonwealth Bank and National Australia Bank finished in the red.|

Stocks in focus

In company news, Downer EDI flew to a five-year high of $7.82 after inking a $750 million deal with Chevron Australia.

It was also a good session for Dyno Nobel, which leapt close to 8 per cent to $3.46, the highest level in three years on better-than-expected results.

Monadelphous Group soared 11 per cent to $25 as the engineering contractor surprised with an upbeat trading update, thanks to strong demand across construction, energy, and infrastructure projects.

AGL Energy added 1.6 per cent to $9.06 after agreeing to divest nearly all its stake in Tilt Renewables to existing shareholders and other entities led by the Queensland Investment Corporation and the Future Fund for $750 million.

Market darling DroneShield rose 1.2 per cent to $3.26, paring earlier gains after the company was forced to retract an announcement of a $7.6 million US government contract, clarifying it was not a new order. The shares had spiked earlier.

And Mayne Pharma slumped 5.9 per cent to $4.61 on news that former suitor US healthcare group Cosette is appealing a NSW Supreme Court decision that it cannot terminate its $672 million takeover of the group. Cosette had previously indicated it would close Mayne’s Adelaide manufacturing plant if the bid succeeded.