The share market has edged higher as the property sector was boosted by the $33 billion takeover of Westfield, and the consumer staples sector also rose.
The benchmark S&P/ASX200 stock index was up 0.14 per cent at 6,021.8 points at 1630 AEDT, after a session in which the index moved within a narrow range.
CMC Markets chief market strategist Michael McCarthy said investors appeared uncertain where to turn outside of property trusts, following news of the biggest ever takeover of an Australian company.
The release of major economic news in the coming 24 hours also played a role, he said.
"It was the property trust sector that strongly led the market gains, as investors circled the wagons ahead of key upcoming events including the US Fed decision on interest rates, US CPI data and industrial production figures due out of China," Mr McCarthy said.
Shares in Westfield jumped 13.7 per cent to $9.66 after the company agreed on Tuesday to a takeover from Europe's biggest property giant that values its securities at $10.01.
While Scentre Group, which owns Westfield's Australian and New Zealand centres, is not involved in the takeover, its shares gained 1.6 per cent to $4.42.
"When a major player like Westfield cashes in its chips, it's a nervous signpost for the retail space," Mr McCarthy said.
"While there's expectations that some $22 billion could flow back into investors hands, the overall impact on sentiment might be negative."
The retail sector was mixed, with JB Hi-Fi and Premier Investments posting small gains, and Harvey Norman and Super Retail Group modestly weaker.
The supermarket giants rose, with Coles owner Wesfarmers gaining 0.9 per cent to $44.18 and Woolworths adding 0.5 per cent to $27.05.
The market's biggest stocks were relatively steady.
ANZ was the weakest of the big four banks, dropping 0.5 per cent to $28.67, while its rivals posted very modest falls.
Rio Tinto dropped 0.2 per cent to $70.14 and BHP Billiton added 0.1 per cent to $27.69.
The Australian dollar is stronger due to improved sentiment in some metals markets, and a fall for the US dollar after the Democrats won the Alabama Senate race, which could have implications for the passage of US President Donald Trump's US tax reforms through Congress.
ON THE ASX:
* The benchmark S&P/ASX200 index was up 8.6 points, or 0.14 per cent, at 6,021.8 points at 1630 AEDT.
* The broader All Ordinaries index was up 10 points, or 0.16 per cent, at 6,103.1 points.
* The SPI200 futures contract was up nine points, or 0.15 per cent, at 6,027 points.
* National turnover was 3.4 billion securities traded worth $6.9 billion.
CURRENCY SNAPSHOT AT 1700 AEDT:
One Australian dollar buys:
* 75.75 US cents, from 75.36 US cents on Tuesday
* 85.84 Japanese yen, from 85.50 yen
* 64.43 euro cents, from 64.01 euro cents
* 56.83 British pence, from 56.46 pence
* 109.06 NZ cents, from 108.73 NZ cents
GOLD:
The spot price of gold in Sydney at 1700 AEDT was $US1,243.95 per fine ounce, from $US1,244.94 per fine ounce on Tuesday.
The three major U.S. stock indexes were higher on Wednesday after the Federal Reserve raised U.S. interest rates by a quarter percentage point, as anticipated, but left its rate outlook for the coming years unchanged even as policymakers projected a short-term acceleration in U.S. economic growth.
Having now raised its benchmark overnight lending rate three times this year, the Fed projected three more hikes in each of 2018 and 2019 before a long-run level of 2.8 percent is reached, unchanged from its last round of forecasts in September.
Kate Warne, investment strategist at Edward Jones in St. Louis said the Fed’s statement was “pretty much as expected” but slightly more dovish.
“So it’s not a big surprise but it’s a shift in the direction of saying the Fed is going to keep watching the data and if we don’t see higher inflation we could see fewer rate hikes in 2018,” said Warne.
At 2:14 p.m. (1914 GMT), the Dow Jones Industrial Average .DJI was up 109.91 points, or 0.45 percent, at 24,614.71, the S&P 500 .SPX had gained 3.87 points, or 0.15 percent, to 2,667.98 and the Nasdaq Composite .IXIChad added 21.42 points, or 0.31 percent, to 6,883.74.
The S&P utilities .SPLRCU sector hit a session high after the news as bond yields hit session lows. It was last up 0.5 percent.
Trading in the S&P financial sector .SPSY was choppy after the news as banks are highly sensitive to interest rate changes. The index first reacted by paring losses before extending losses slightly as the session wore on. It was last down 0.59 percent.
Investors were also focused on President Donald Trump’s administration’s efforts to overhaul the U.S. tax system.
Congressional Republicans reached a deal on final tax legislation on Wednesday according to Senate Finance Committee Chairman Orrin Hatch. And Trump said he would back a corporate tax rate of 21 percent.
Earlier in the day a Labor Department report showed underlying consumer inflation slowed in November, possibly impacting the pace at which the Fed hikes rates.
Investors also assessed Democrat Doug Jones’ victory in a bitter fight for a U.S. Senate seat in deeply conservative Alabama on Tuesday. Some participants said his win could mean trouble for Trump’s policy agenda as it narrows the Republicans’ already slim majority in the Senate.
Advancing issues outnumbered declining ones on the NYSE by a 1.31-to-1 ratio; on Nasdaq, a 1.83-to-1 ratio favored advancers.
The S&P 500 posted 39 new 52-week highs and no new lows; the Nasdaq Composite recorded 57 new highs and 39 new lows.
Source: Netwealth Morning Business Roundup
Start the day with Spinach and Sundried Tomato Scrambled Egg along with Sour Dough Toast. Add some Pineapple and Ginger Juice for a bit of zing.
Happy Trading! Hopefully it's more lively than yesterday.
