SYDNEY: The Australian stocks opened more than half a per cent higher after Wall Street surged on the back of the Federal Reserve’s statement on interest rates.
At the 10.15am (AEDT) official market open, the benchmark S & P/ASX200 index was up 34.5 points, or 0.59 per cent, at 5,876.8 points, while the broader All Ordinaries index added 35.2 points, or 0.61 per cent, to 5,843.2 points.
In its post-meeting statement, the US central bank’s Federal Open Market Committee said the labour market needed to improve before it raised the federal funds rate.
CMC chief market strategist Michael McCarthy said US Fed chair Janet Yellen had played the perfect central bank game overnight, “fine tuning the Fed’s stance, preparing the markets for higher interest rates and simultaneously weakening the US dollar and producing a significant rally in bonds, shares and commodities”.
