The Australian share market has lifted by nearly one per cent, after the US Federal Reserve left its key interest rates unchanged and Australia’s unemployment rate fell to 5.8 per cent.
In the US, Wall Street firmed on Wednesday after the Federal Reserve kept interest rates on hold and signalled fewer rate rises in coming months.
Locally, data released by the Australian Bureau of Statistics on Thursday showed that the total number of people with jobs rose by just 300 in February, consolidating for the third consecutive month, but the unemployment rate fell from January’s 6.0 per cent.
Phillip Capital senior client adviser Michael Heffernan said an improved profit forecast from retailer Myer, and some stability in the prices for oil and iron ore also boosted market sentiment.
“There’s been a range of factors – all generally positive,” Mr Heffernan said.
“Today’s rise had been workmanlike – if you get a one per cent rise, that’s nice.”
Energy and mining companies, which are expected to benefit from the easing US dollar after the Federal Reserve’s dovish message, led the Australian market higher.
Global miner BHP Billiton lifted 41 cents to $17.29, Rio Tinto added $1.04 to $43.73, and Fortescue Metals rose 22 cents to $2.65.
Oil and gas producer Woodside Petroleum was up 58 cents to $26.62, and Santos ascended 19 cents to $3.99.
Among the major banks, Commonwealth Bank strengthened $1.34 to $77.38, National Australia Bank found 11 cents at $28.19, ANZ picked up 27 cents at $25.86, and Westpac improved 20 cents to $32.69.
In the retail sector, department store operator Myer surged 14 cents, or 12.73 per cent, to $1.24 after it slightly improved its full-year profit forecast, on the back of strong sales growth.
Accessories retailer Oroton soared 56 cents, or 27.32 per cent, to $2.61 after its half-yearly profit rose by 72.5 per cent.
KEY FACTS:
* On Thursday, the benchmark S&P/ASX200 index was up 49.2 points, or 0.96 per cent, at 5,168.2 points.
* The broader All Ordinaries index was up 50.7 points, or 0.98 per cent, at 5,226.4 points.
* The June share price index futures contract was up 59 points at 5,170 points, with 43,274 contracts traded.
* The price of gold in Sydney at 1700 AEDT was $US1,258.28 per fine ounce, up 22 US cents on Wednesday’s price of US$1,258.06.
* National turnover was 3.2 billion securities traded, worth $7.3 billion.
