Australian Stocks Are Ripping Higher

Photo: Getty Images

The Australian market is on a tear, tracking a 2% jump in stocks on Wall Street overnight.

In the US, the S&P 500 closed at 2012.88 after the Federal Reserve kept interest rates on hold and indicated a gradual rise next year.

In Australia, local stocks took off led by the banks and by big miners.

The ANZ Bank was up 1.44% to $30.91, the NAB 1.37% to $31.78, Westpac 0.83% to $31.59 and the Commonwealth 0.67% to $81.56.

BHP was up 2.65% to $28.24 and Rio Tinto 2.7% to $54.82. Energy stocks were also up including Woodside Petroleum which was 2.7% to $36.64.

Stan Shamu, IG’s Market Strategist, says it’s always important for the Fed to get the language right so as not to spook markets at such a fragile time and it seems it has done just that.

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