The Australian share market is up on strong leads from the US after the Federal Reserve retained its policy of ultra-low interest rates.
Investors had reacted positively to the Fed’s monetary policy announcement overnight, Lonsec senior client adviser Michael Heffernan said.
“The US central bank put out very upbeat commentary on how the American economy is progressing and we saw a good movement upwards in their share market indices and our market has followed,” he said.
The S&P 500, a broad measure of the US stock markets, bolted to a new record, jumping 14.99 points (0.77 per cent) to 1,956.98.
On the local share market, the major miners and the big four banks all posted gains.
Rio Tinto swelled $1.13 cents to $59.03, BHP Billiton climbed 82 cents to $36.10 and Fortescue Metals added 13 cents to $4.15.
Commonwealth Bank was 40 cents higher at $81.40, National Australia Bank was up 20 cents at $33.21, Westpac gained 23 cents to $34.07 and ANZ was 11 cents firmer at $33.85.
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TV broadcaster Ten shares dipped 2.5 cents to $26.5 after announcing its revenue will likely be 3.5-4.5 per cent lower in the 2013/14 financial year due to sliding advertising revenues and higher costs.
Meanwhile, rail operator Asciano’s shares rose 17 cents to $5.40 on news it’ll axe about 500 jobs to help reduce costs by $90 million during the 2014/15 financial year.
Key facts:
- At 1030 AEST on Thursday, the benchmark S&P/ASX200 index was up 37.6 points, or 0.7 per cent, at 5,420.3.
- The broader All Ordinaries index was up 36 points, or 0.67 per cent, at 5,399.9.
- The June share price index futures contract was 52 points higher at 5,434, with 7,753 contracts traded.
- National turnover was 548 million securities worth $2 billion.
