PERTH: 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 the 4.15pm (AEST) official market close, the benchmark S&P/ASX200 added 47.9 points, or 0.94 per cent, to 5146.8 points, while the broader All Ordinaries rose 47.6 points, or 0.93 per cent, to 5171.2 points.
The growing sense that the US Fed may not hike interest rates has also pushed the Australian dollar above US72c for the first time in three weeks.
“The Australian dollar is looking very confident that the US won’t raise rates,” Rivkin chief executive Scott Schuberg said.
Assuming the US doesn’t raise rates tonight, Rivkin senior currency analyst Richard Sexton said the Australian dollar is unlikely to test the US69c level again “for some time”.
IG market analyst Angus Nicholson said the ASX has been rallying on expectations that the Fed will leave rates on hold. While September’s FOMC meeting decision is in doubt, the market is pricing in 100 per cent chance of lift-off before the end of the year.
Recent gyrations in global sharemarkets have thrown the hotly anticipated September rate hikes into doubt.
