Australian shares pushed firmly higher on Friday to their highest close since 2015 after a dramatic night during which investors witnessed the appointment of a new US central bank chief and the release of long-awaited American tax reform legislation.

The S&P/ASX 200 sharemarket  index settled up 28 points or 0.5 per cent higher on Friday at 5960, bringing the week's gains to 1 per cent and cementing a solid start to November after a barnstorming October. The moves also brought the benchmark measure to its highest levels since May 2015 and once again within striking distance of the elusive 6000-point threshold.

Investors around the world received confirmation on Friday morning that US Federal Reserve governor Jerome "Jay" Powell had received the nod to replace current chief Janet Yellen, whose term expires in February. Analysts and investors took the well-flagged news calmly.

"Powell's appointment should preserve continuity at the Fed, as his stated economic and monetary policy views largely mirror those of the current leadership," Goldman Sachs economists said. "He is likely to bring a somewhat lighter touch to financial regulation."

A string of earnings updates, annual meetings and strategy days from major ASX companies sparked some sharp moves in share prices over the trading week. Among the bluechips, Woolworths shares climbed 3.8 per cent after the supermarket owner's quarterly sales number showed it was gaining ground against its major competitor, Wesfarmers-owned Coles. Struggling department store Myer, on the other hand, dropped 7 per cent over the five sessions after CEO Richard Umbers revealed disappointing sales figures and slashed targets.

Perhaps the biggest corporate news was NAB's solid annual profit result, which was overshadowed by the bank's plans to invest heavily in technology now in order to deliver cost savings later. Investors fretted whether NAB boss Andrew Thorburn could deliver on his promises, and the shares dropped 2.5 per cent over the week to be the biggest single weight on the ASX.

Energy was the best performing corner of the sharemarket over the week, adding 4.6 per cent as well-received quarterly updates from Origin Energy and Beach Energy boosted those stocks. Continued strength in the oil price, which has hit multi-year highs, continues to drive the segment higher. Miners also shone, with BHP, Rio Tinto and South32 all adding more than 4 per cent.

Strong trade and buildings approval data was cheered by economists on Thursday, with the Australian dollar pushing back above US77¢. That cheer was short-lived, however, as weak retail sales data on Friday immediately dented rate hike expectations and sent the Aussie lower. The currency traded at US76.9¢ late Friday, marginally higher for the week.

Stock Watch

Sandfire Resources

Shares in copper miner Sandfire Resources jumped 6.7 per cent on Friday after a couple of brokers upgraded the stock, amid a booming market for the red metal. Credit Suisse analysts lifted their recommendation on the stock to neutral in line with an upgrade in their expectations for copper prices. "Much of the volatility in Sandfire's equity price is attributable to movement and outlook in copper prices, although the share price does not appear to be pricing in currently elevated spot copper price," the analysts wrote. Goldman Sachs analysts upped their rating to "buy", with a $7.50 12-month share price target against Friday's close of $6.25. "The key opportunity for material value enhancement by Sandfire is exploration success," the CS analysts wrote.

National Australia Bank

According to analysts, NAB's annual dividend will be stuck in the mud at $1.98 for at least the next three years, after not moving for the past three. Credit Suisse's bank analysts reckon clients should be buying and NAB shares are worth $34 a share. Morgan Stanley"s team is on the other side of the trade, telling clients to sell and that the shares are worth only $27.70. But they all agreed NAB's dividend will not rise before 2021. The stock closed Friday at $31.79.

Retail spending

Retail spending was steady in September, coming in well shy of market expectations of a 0.4 per cent increase. Seasonally adjusted retail spending totalled $25.9 billion in the month, according to the Australian Bureau of Statistics. Household goods retailing fell 0.4 per cent, clothing, footwear and personal accessory sales fell 0.7 per cent, while department store sales were up 2.1 per cent.

Oil

Oil markets touched their highest levels in more than two years, supported by confident sentiment as OPEC-lead supply cuts help tighten the market, but analysts cautioned that the cuts would need to be extended to counter rising US output. Brent crude, the international benchmark, was at $US60.85 a barrel and has jumped 35 per cent since late June.

The pound

The British currency dropped sharply after the Bank of England on Thursday night lifted rates for the first time in a decade. Analysts put the currency's counterintuitive move down to the BoE's clear signal that the hike, which took the official rate to 0.5 per cent, would not be followed with more anytime soon. Worries about Brexit continue to weigh on policymakers. Fidelity International global economist Anna Stupnytska called the so-called "dovish hike" an "odd decision".