AAP

US stocks have edged lower as videogame makers gave disappointing revenue forecasts and investors awaited developments on US-China trade relations.

Australian shares have finished higher for a third straight day, while the Australian dollar has hit the skids after the Reserve Bank opened the door to a possible rate cut.

Coles has signed a new deal with petrol partner Viva Energy Australia after predicting earnings from its convenience store division to plunge this year more than 60 per cent.

Commonwealth Bank of Australia's first-half cash profit has fallen 2.1 per cent to $4.676 billion, weighed down by Australia's slowing property markets.

Australian shares have strayed into positive territory at midday as mining shares picked up the slack while the major banks lost some of their gains of the previous day.

Oil prices fell overnight, pulling back from two-month highs as concerns over a global economic slowdown crept back into the market and a stronger US dollar also weighed.

Gold moved slightly higher overnight, supported by uncertainties surrounding US-China trade relations ahead of President Donald Trump's State of the Union address to the Congress, while a firmer US dollar and rising global stock markets capped gains.

US stocks have closed higher as largely upbeat corporate results fuelled investor optimism ahead of the highly awaited State of the Union address by President Donald Trump.

The Australian share market has had its biggest day in 26 months as investors breathed a sigh of relief the Hayne royal commission hadn't recommended harsher penalties for the big banks.

The Reserve Bank of Australia has again kept the official cash rate at a record low of 1.5 per cent, but Governor Philip Lowe has tempered his economic outlook.

National Australia Bank chief executive Andrew Thorburn says he is "more determined than ever" to lead the bank despite strong criticism from Kenneth Hayne in his final royal commission report.

The current and former prime ministers agree they waited too long to call the banking royal commission but the treasurer says it's time to look forward, not back.

Australian shares are rallying at midday lead by the big four banks, with investors seemingly relieved that the financial services royal commission had not recommended harsher measures.

Oil prices fell overnight after disappointing US factory data sparked fresh concerns about a slowdown in the global economy, but losses were limited as OPEC-led supply cuts and US sanctions against Venezuela pointed to lower supplies.

Gold retreated to a near one-week low overnight as the US dollar built on momentum from upbeat US economic data, denting bullion's appeal.

Wall Street has gained on Monday, with all three major indexes closing near session highs as sustained optimism on the prospects for US-China trade relations propelled technology shares.

Financial stocks have given the Australian share market a surprising lift despite the sector bracing for the fallout from a landmark misconduct inquiry.

The banking sector has been told it "must change forever" for forcing the Australian community to pay an immense financial and emotional price over many years.

Some of Australia's bank chiefs remain unwilling to accept responsibility for poor conduct, royal commissioner Kenneth Hayne says.

The corporate watchdog has told Commonwealth Bank of Australia's financial planning unit to stop charging customers with fees after failing to meet its obligations from the fees-for-no-service scandal.

Australian shares are in positive territory at midday after stocks in the four major banks gained, shaking off concerns about the release of the financial services royal commission on Monday afternoon.

Oil prices rose about 3 per cent on Friday on upbeat US jobs data and signs that US sanctions on Venezuelan exports have helped tighten supply, then extending gains after weekly data showed U.S. drillers cut the number of oil rigs.

Gold slipped on Friday, weighed down by robust US jobs data, but remained on course for a second week of gains buoyed by the US Federal Reserve's signal that it would pause its interest rate hikes.

Wall Street ended mixed on Friday, as optimism from a surge in January US job growth was offset by a weaker-than-expected outlook from Amazon.com that battered retail stocks.

The Australian share market has closed flat after a subdued final day of trading with early gains in the mining sector keeping stock prices afloat.

Qantas has bought 20 per cent of Alliance Airlines and wants to grab an even larger stake of the regional charter operator.

Healthscope has agreed to a $4.5 billion takeover by Canadian investment firm Brookfield, despite rival bidders suggesting they could increase their offer.

Australian shares are flat at noon after the big miners gave up some of their earlier gains amid a subdued day of trading.

Wall Street has ascended, with the S&P 500 wrapping up its biggest monthly increase since 2015 after strong earnings from Facebook Inc added to optimism after the Federal Reserve's dovish remarks.

Gold prices were steady overnight, having earlier hit their highest in nine months after the US Federal Reserve kept interest rates steady and said it would be patient on further hikes, keeping bullion on track for a fourth-straight monthly gain.

Oil prices have risen for a third straight day as production cuts curbed supply from OPEC and its allies, and US monetary policy appeared to be more favourable.

A strong performance by the energy and mining sectors was not enough to save the Australian share market from being weighed down by troubled financials at the close.