ASX lifts on 'less Hawkish' Fed, Aussie follows

The news: The Australian sharemarket extended its rebound today, after a relatively dovish rate hold by the US Federal Reserve helped lift markets. The benchmark ASX 200 gained 0.9% to 6,899.70, as it continued its rebound from the sub-6800 level. The Aussie dollar also rallied to 64.2US cents, as expectations of a Reserve Bank rate increase deviated with the Fed's decision to hold. Brent crude futures recovered slightly after falling almost 3% overnight, with Brent crude now trading at USD85.42 a barrel.

The numbers: By sector, IT stocks (+3.25), real estate (+2.4%), financials and healthcare stocks (1.4% each) rallied, while utilities (-3.8%) and energy stocks (-2.0%) tumbled, tracking an overnight slump in the oil price. The rout in utilities was led by a 6.4% nosedive by Origin, after shareholder AustralianSuper put the kybosh on a sweetened deal from takeover suitors EIG and Brookfield. Building products company CSR had a rocky day, lifting more than 2% in early trade despite a drop in half year profits, before falling into the red in the afternoon and finally recovering to close 0.4% higher at $5.64.

The context: Qantas, Coles and Spark NZ will hold AGMs tomorrow. The parliamentary committee inquiry into the consulting industry, ASIC oversight and the takeovers panel continues in the morning, with ASIC commissioner Kate O'Rouke and regulation and supervision executive director Greg Yanco giving evidence. The Bank of England will deliver its bank rate decision overnight, with analysts betting on a hold at 5.25%.