A roundup of trading on major world markets:
NEW YORK – The S&P 500 and the Dow Jones industrial average have turned positive for the year, a day after the US Federal Reserve signalled fewer interest rate hikes for the year.
The Fed’s dovish stance weighed on the US dollar, which catapulted commodity prices to their highest levels this year.
The best performing sectors in the S&P 500 were materials and energy.
“It’s a continued reaction from the Fed’s move yesterday,” said David Lefkowitz, senior equities analyst at UBS Americas Wealth Management in New York.
The Fed on Wednesday pointed to moderate US economic growth and strong job gains but cautioned about risks from an uncertain global economy.
The central bank pointed to the possibility of two more rate hikes before the end of the year, having laid out four hikes in 2016 when it raised rates in December.
The Dow Jones industrial average was up 181.96 points, or 1.05 per cent, to 17,507.72; the S&P 500 had gained 15.59 points, or 0.77 per cent, to 2,042.81 and the Nasdaq Composite had added 11.60 points, or 0.24 per cent, to 4,775.57.
US crude was up 4.42 per cent at $US40.15 a barrel and the market pinned its hopes on a plan by major oil producers to freeze output to mitigate a global glut.
Healthcare was the only decliner among the 10 major S&P 500 sectors. It fell 0.98 per cent, dragged down by Eli Lilly’s 4.5-per cent fall.
Industrials gained 2 per cent, propped up by General Electric’s 2.9-per cent rise to $US31.06. The stock gave the biggest boost to the S&P 500.
LONDON – UK shares have edged higher, outperforming their European counterparts, as miners were boosted by a weaker dollar after the US Federal Reserve’s dovish decision to hold interest rates steady.
A fall in the US dollar pushed shares in British commodities stocks higher as dollar-priced crude oil and metals became cheaper for holders of other currencies.
The FTSE 100 index rose 25.63 points, or 0.3 per cent to 6,201.12 points by the close on Thursday, outperforming steeper falls in euro zone shares.
Miners were the top sectoral gainers on the blue-chip index, with the FTSE 350 Mining index jumping 7.5 per cent as the price of copper rallied to a four-month high.
Anglo American, Glencore, Antofagasta , BHP Billiton and Rio Tinto all rallied between 5.4 per cent and 9.8 per cent.
The oil and gas sector also rose, tracking the price of oil, which extended its strong gains after the world’s biggest suppliers firmed up plans to meet to discuss an output freeze.
The index was unmoved by the Bank of England’s decision to keep rates steady, with policymakers adding that sterling had been dealt a big hit by uncertainty in the run-up to the referendum on EU membership.
HONG KONG – Hong Kong shares finished higher on Thursday after the Federal Reserve reduced the number of expected interest rate hikes this year, buoying global equities.
The Hang Seng index rose 1.2 per cent to 20,503.81 points, while the China Enterprises Index gained 2.4 per cent to 8,773.83.
Total trading volume of companies included in the HSI index was 1.7 billion shares.
WELLINGTON – The S&P/NZX 50 Index rose 10.5 points, or 0.16 per cent, to 6,573.46, following international markets.
