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Will it be ASX 6,000 in 2015?

The S&P/ASX 200 Index (Index: ^AXJO) (ASX: XJO) has surged beyond the 5,300 level today, climbing a staggering 109.6 points, or 2.1%, following on from strong performances from global equities markets overnight.

In the US, the Dow Jones and S&P 500 indices both jumped 2.4% while the NASDAQ rose 2.2%. Meanwhile in Europe, the FTSE 100 jumped a little over 2%.

The rises came largely as a result of comments made by US Federal Reserve President Janet Yellen earlier the week, who indicated that low rates may be the theme until 2017. Providing further relief for equities markets was a reduction in the number of Americans’ filing claims for unemployment benefits, indicating the labour market is improving and the US economy is strengthening.

A Merry Christmas…

Australia’s blue chip stocks have certainly responded well to the news, kick-starting the so-called “Santa Rally” and providing a much needed sense of relief for local investors. Not even a 0.9% dip in the oil price overnight could stop BHP Billiton Limited (ASX: BHP) or Woodside Petroleum Limited (ASX: WPL) from rising 3.2% and 2.6% respectively while Rio Tinto Limited (ASX: RIO) also rose 2.4%.

The big four banks have also risen strongly with National Australia Bank Ltd. (ASX: NAB) and Westpac Banking Corp (ASX: WBC) rising 2% each. Commonwealth Bank of Australia (ASX: CBA) also surged 2% to $83.47, threatening to break through its previous all-time high at $83.92.

… And a Happy New Year

Hope has certainly returned to the market and investors should prepare for an even better 2015.

As I wrote yesterday, Credit Suisse recently tweeted that it expects the ASX 200 to hit 6,000 points by December next year – a target which now seems more than achievable. While US rates are tipped to remain low (although, they should rise marginally next year), Australian interest rates are expected to be cut further which could spark an enormous level of interest in the local share market.

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Motley Fool contributor Ryan Newman does not own shares in any of the companies mentioned. You can follow Ryan on Twitter @ASXvalueinvest.

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