Australian stocks are rallying after the Fed statement

(Photo by Bill Ingalls/NASA via Getty Images)

The Australian market has taken off after it became clearer that the US wouldn’t be tightening monetary policy early.

Wall Street closed strongly overnight with the S&P 500 up 1.2% after the Fed downgraded its growth forecasts, indicating that rates would stay low for at least the time being.

On the local market, stocks posted their best gains in two months.

Trading volumes were higher than usual with 1.1 billion shares worth $4.1 billion changing hands.

Energy stocks were up more than 2% across the board. Woodside Petroleum gained 1.13% to $35.25, Origin Energy more than 2% to $11.73 and Caltex 1.18% to $37.40.

The major banks were all higher. The Commonwealth rose 2.21% to a record high of $95.45. Westpac was up 2.38% to $39.60, the ANZ 1.95% to $36.62 and the NAB 1.8% to $39.07. AMP was 3% stronger at $6.69.

Among the miners, BHP was higher by 1.24% to $30.57.

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