SYDNEY: The Australian sharemarket has surged ahead of tonight’s highly anticipated US Federal Reserve rates call, as energy stocks soar on a strong bounce in crude oil prices.
Investors remain upbeat approaching the US Federal Reserve’s decision on whether to raise interest rates for the first time in nearly a decade, with financial markets predicting a 30 per cent chance of lift-off.
At 12.05pm (AEST), the benchmark S&P/ASX200 added 79.9 points, or 1.57 per cent, to 5178.8 points, while the broader All Ordinaries rose 77 points, or 1.5 per cent, to 5200.6 points.
CMC chief market strategist Michael McCarthy said rising share prices, rising commodity prices, and the Australian dollar creeping higher, all pointed to support for Australian stocks today.
“The quarterly futures expiry will add extraordinary liquidity, and combined with the overnight impulse could see a heavily traded surge higher,” he said.
“However, the key market event remains the US Federal Reserve’s interest rate decision due early tomorrow morning, and investors may curb their enthusiasm ahead of the call.”
Energy stocks led the market higher at noon, adding 3.02 per cent after crude prices rallied on the back of a US petroleum supply report showing lower inventories and oil production.
