The ASX is set to continue recent strength with further gains this morning, June SPI futures point 29 points north
U.S. stocks closed higher Friday, extending the rally that followed the Federal Reserve's accommodative policy decision earlier in the week.
The major averages closed nearly 1 percent higher or more for the week, their fifth-straight week of gains since November.
"Traders, investors are looking at a calm backdrop for markets. There's nothing like buying begetting buying," said Quincy Krosby, market strategist at Prudential Financial.
"I do think some of this has been short covering but I think more money is coming into the market and it looks like the Fed is going to try to be on hold for as long as possible," she said.
Health care and financials led advancers, while telecommunications was the greatest laggard. 1
The Fed news followed the Bank of Japan's decision to keep rates unchanged earlier in the week and the European Central Bank's package of stimulus measures, including a rate cut, last week. 1
U.S. crude oil futures for April delivery settled down 76 cents, or 1.89 percent, at $39.44 a barrel. Oil briefly topped $41 a barrel in morning trade for its highest level since Dec. 4.
Gold settled down $10.70 at $1,254.30 an ounce and lost nearly 0.4 percent for the week, its second-straight weekly decline.
"The only thing I'd look to confirm this (rally in stocks) is gold. ... If that continues to trade lower that would confirm this as well," said Dan Veru, chief investment officer at Palisade Capital Management.
Iron ore futures in China jumped 6 per cent on Friday after a rally in Shanghai steel prices to their highest since July renewed buying in the raw material, with a brisk increase in domestic home prices reviving hopes for the property sector. 2
