The energy sector has driven the Australian share market higher despite mixed leads from overseas.

Battered energy stocks have risen on Monday, along with the oil price.

CMC market analyst Michael McCarthy said it appears that energy stocks have turned the corner.

“The positive bias for our stocks has been a surprise given the negative leads from the US,” Mr McCarthy said.

“The main driver is the energy sector.”

Energy stocks were more than one per cent higher in morning trade.

However, Mr McCarthy said, investors were still cautious amid weak volumes and high volatility.

Wall Street stocks finished the first trading day in 2015 little-changed following lacklustre US economic data and with many market participants still on holiday.

Meanwhile, worries about deflation in Europe and a new financial crisis in Greece ahead of national elections later in January are weighing on global and local sentiment.

Woodside Petroleum rose 32 cents to $38.45, Santos added 10 cents to $8.29 and Oil Search lifted 15.5 cents to $8.04.

Global miner BHP Billiton dropped nine cents to $29.45, Rio Tinto lost 12 cents to $58.21 but iron ore pure-play Fortescue Metals was 4.5 cents stronger at $2.87.

The big four banks were mixed, with Commonwealth Bank up 17 cents at $85.91, Westpac gaining one cent to $33.28, and NAB five cents higher at $33.61, but ANZ dropping three cents to $32.20.

KEY FACTS

* At 1200 AEDT on Monday, the benchmark S&P/ASX200 index was 16.4 points, or 0.28 per cent, higher at 5,451.

* The broader All Ordinaries index was up 15.2 points, or 0.3 per cent, at 5,431.

* The March share price index futures contract was 10 points higher at 5,410, with 11,727 contracts traded.

* National turnover was 350 million securities worth $651 million.