Australian shares end higher as tech, banks gain; Fed outcome in focus

Saturn Metals

16/03/2022 06:10

* U.S. Federal Reserve meeting's outcome later in the day 
    * Tech, financials boost benchmark
    * Travel stocks rise on border reopening in New Zealand

 (Updates to close)
    By Archishma Iyer
    March 16 (Reuters) - Australian shares closed higher on
Wednesday, led by technology and healthcare stocks, as investors
globally awaited the outcome of the U.S Federal Reserve's
meeting later in the day. 
    The S&P/ASX 200 index  .AXJO  ended 1.1% higher at 7,175.2
points.
    Rising inflationary pressures, geopolitical worries, and
volatile commodity prices have led to choppy trading sessions
since late-February, with growth-focused stocks taking much of
the beating.
    The outcome of the Fed's two-day meeting later in the day is
in focus, where it is expected to raise interest rates by 25
basis points. Traders will also eye projections by the central
bank on its bond-buying program, inflation, and the timeline of
more rate hikes.
    A slightly dovish stance may be adopted by the Fed despite a
rate hike, as a pullback in commodity prices have eased some of
the price pressures, said Damien Rooney, director of equity
sales at Argonaut. 
    Meanwhile, technology stocks led gains on the Australian
benchmark, climbing as much as 3.7%. 
    "The outperformance of tech stocks might seem startling, at
a time of rate hike," said Kunal Sawhney, CEO of Kalkine Group. 
    "However, this rise can explained as investors usually pick
up high-quality stocks at low prices following a huge sell-off."
    Financial stocks rose for a third straight session, hitting
their highest since Feb. 21. The "Big Four" banks firmed
0.1%-1.9% 
    Energy stocks gained about 0.2% after crude prices rose on
persisting Russia-Ukraine tensions. Index majors Woodside
Petroleum Ltd  WPL.AX  and Santos Ltd  STO.AX  rose about 0.2%
and 0.6%, respectively.  O/R 
    Miners  .AXMM  climbed 0.3%, as iron ore prices rebounded
from a two-week low in China, the world's largest producer of
steel.  IRONORE/ 
    Travel stocks gained as New Zealand reopened its borders.
Major carrier Qantas Airways  QAN.AX  added 4.1%.
    New Zealand's benchmark S&P/NZX 50 index  .NZ50  ended 0.6%
higher at 11,847.1. 

 (Reporting by Archishma Iyer in Bengaluru; editing by
Uttaresh.V)
 ((Archishma.Iyer@thomsonreuters.com
mailto:Archishma.Iyer@thomsonreutyers.com))
 
((For more information on DIARIES & DATA:
 U.S. earnings diary   RESF/US   
 Wall Street Week Ahead    .N/O 
 Global Economy Week Ahead  DATA/ 
................................................................
For latest top breaking news across all markets           NEWS1 ))