SYDNEY: A robust session on Wall Street, fuelled by expectations of a lowered rates trajectory for 2016 and 2017, spurred the local sharemarket to a strong start to the day’s trade.
At the 10.15am (AEST) official market open, the benchmark S&P/ASX200 index surged 53.3 points, or 0.96 per cent, at 5578.2 points, while the broader All Ordinaries index lifted 50.4 points, or 0.91 per cent, to 5,573.1.
Mixed data on inflation and employment boosted US investors’ hopes of dovish sentiment from the Fed, seeing the Dow Jones Industrial Average surge 177 points, or 1 per cent, to 18,113. Meanwhile, the S&P 500 index climbed 21 points, or 1 per cent, to 2,121.
Rivkin Securities chief executive Scott Schuberg said that despite feverish speculation of a possible Grexit from the eurozone, traders seemed more interested in the future trajectory of US interest rates.
“Traders seemed to conclude last night, irrespective of the outcome, that the world is going to be OK irrespective of what happens to Greece, buying up equities and risk currencies in the process,” Mr Schuberg said.
Broad gains were spread out throughout all sectors.
