US Fed holds rates: 10 shares you need to watch today

Wall Street surged higher overnight after the U.S. Federal Reserve kept interest rates on hold, although it did signal there could still be a rate hike before the end of 2016.

The S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) is expected to follow in Wall Street’s footsteps, with the Sydney Futures Exchange pointing to a 30-point lift at the open.

Here’s a quick recap:

  • FTSE 100 (UK): up 0.06%
  • DAX (Germany): up 0.41%
  • CAC 40 (France): up 0.48%
  • Dow Jones (USA): up 0.9%
  • NASDAQ (USA): up 1.03%

The telecommunications sector is likely to remain in the limelight again today.

TPG Telecom Ltd (ASX: TPM) shares have been flattened so far this week following a lacklustre earnings report, while it was Vocus Communications Limited’s (ASX: VOC) turn to plunge when its CFO unexpectedly resigned on Wednesday.

Telstra Corporation Ltd (ASX: TLS) shares have held up better than those of its two rivals, shedding less than 1% of their value so far this week.

The Australian dollar has surged past US76 cents as a result of the Federal Reserve’s decision on interest rates, which could weigh on shares of businesses that generate much of their income in the United States. That could include the likes of Westfield Corp Ltd (ASX: WFD) and Cochlear Limited (ASX: COH).

More questions are being asked of the ASX Limited (ASX: ASX) after the market outages experienced on Monday, with rival market operator Chi-X questioning whether the ASX could have done more to enable market liquidity, according to The Australian Financial Review. Despite the issues, ASX’s shares have lost just 1.2% so far this week.

Sydney Airport Holdings Ltd (ASX: SYD) could be one to watch today after its shares rallied 3.6% on Wednesday, while the lithium miners could attract some attention following a disastrous session as well.

Galaxy Resources Limited (ASX: GXY) shares fell a little over 7%, while Orocobre Limited (ASX: ORE) and Pilbara Minerals Ltd (ASX: PLS) shed 5.3% and 7.3%, respectively. The lithium space has received plenty of attention so far in 2016, but there are some concerns that the lithium boom could end in a bust.

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Motley Fool contributor Ryan Newman has no position in any stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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