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Aussie market up ahead of US Fed decision

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The Australian share market has closed higher as it continues to swing wildly ahead of a decision from the US Federal Reserve on whether or not to raise interest rates.

The major banks, mining and energy stocks found support.

The US Federal Reserve will decide on Thursday (on Friday in Australia) whether to lift interest rates which have been close to zero for the last seven years.

Speculation in recent months about when the Fed will lift interest rates has caused uncertainty among stock markets around the world.

OptionsXpress market analyst Ben Le Brun said the Australian market had erased the losses sustained on Tuesday, after US markets provided a positive lead.

But investors appeared to be trading with little conviction, and the local bourse may swing back into the red on Thursday.

“The market’s doing well but certainly sentiment is shifting on a five-cent piece at the moment,” Mr Le Brun said.

“You couldn’t say with any confidence or conviction what’s going to happen tomorrow, let alone on Friday after we get the Federal Reserve meeting out of the way.

“That’s what the market is very much focusing on at this stage.”

Among the major banks on Wednesday, National Australia Bank added 68 cents at $30.51, Westpac lifted 87 cents to $31.07, ANZ advanced 74 cents to $27.88, and Commonwealth Bank gained $1.93 to $75.35.

In the resources sector, global miner BHP Billiton rose 54 cents to $23.97, Rio Tinto firmed 57 cents to $51.31, and Fortescue Mining found four cents at $2.05.

Oil and gas producer Woodside Petroleum jumped 85 cents to $29.10, and Santos put on 25 cents to $4.90.

Beach Energy was up two cents to 54 cents as its managing director resigned for family reasons.

Among other stocks, share market debutant and nutritional products supplier Vitaco closed at $2.38, 28 cents or 13.33 per cent above its issue price of $2.10.

KEY FACTS

* At 1620 AEST on Wednesday, the benchmark S&P/ASX200 index was up 80.5 points, or 1.6 per cent, at 5,098.9 points.

* The broader All Ordinaries index was up 76.9 points, or 1.52 per cent, at 5,123.5 points.

* The September share price index futures contract was up 112 points at 5,118 points, with 91,289 contracts traded.

* National turnover was 1.98 billion securities worth $6.56 billion.