SYDNEY: The Australian sharemarket pared some of its earlier gains to finish modestly higher, as Reserve Bank governor Glenn Stevens failed to provide clarity about the trajectory of local interest rates.
The equity market jumped sharply in early trade, pushing more than 1 per cent higher as waning expectations for an imminent rate hike by the US Federal Reserve lifted stockmarkets across Asia.
But the strong bounce in resources stocks had become muted by the close, following the RBA’s fifth straight month of holding interest rates steady at the record low 2 per cent level.
At the 4.15pm (AEDT) official market close, the benchmark S & P/ASX200 index added had added 16.9 points, or 0.33 per cent, to 5167.4, while the broader All Ordinaries rose 14.9 points, or 0.29 per cent, to 5199.
Mr Stevens made note of recent equity market volatility in his post-meeting statement on monetary policy and that the regulatory crackdown on surging property prices was working.
