The Australian share market is enjoying a powerful rally today after the US Federal Reserve indicated that interest rates would not rise as quickly as some investors had expected. While the Dow Jones and NASDAQ indices rallied 1.3% and 0.9% as a result, the S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) has followed suite, lifting 89 points or 1.5%.
While the gains have indeed been widespread, the nation's high-yield blue-chip stocks are doing most of the heavy lifting. This is because the Fed's announcement pushed the Australian dollar higher, escalating the pressure on the Reserve Bank of Australia to cut interest rates in the near future.
Westpac Banking Corp (ASX: WBC) has risen most out of the banks to be trading 1.6% higher, but National Australia Bank Ltd. (ASX: NAB), Australia and New Zealand Banking Group (ASX: ANZ) and Commonwealth Bank of Australia (ASX: CBA) have also risen in excess of 1.2% each. Meanwhile, Telstra Corporation Ltd (ASX: TLS) has also jumped 1.3%.
The energy sector is also providing plenty of drive following a strong rise in oil prices overnight. Senex Energy Ltd (ASX: SXY) has jumped 5.1% while the bigger players, including Woodside Petroleum Limited (ASX: WPL), BHP Billiton Limited (ASX: BHP) and Santos Ltd (ASX: STO) have lifted 1.4%, 1.6% and 1.8% respectively.
Today's strong rally will provide a huge boost of confidence for investors who have endured significant volatility in recent weeks. With the ASX 200 now trading at 5,932 points, there is every chance it could hit the 6000 mark for the first time in seven years in the very near future.
