Australian shares are expected to rise at Friday's open, after U.S. Federal Reserve policymakers announced a quarter-point rate cut in line with market expectations.
By 7:00 am AEDT (8:00 pm GMT) ASX futures were up 100 points or 1.2%.
Following the Fed’s decision, U.S. equities saw modest gains, and bond yields remained steady as Fed Chair Jerome Powell addressed the media.
Powell reaffirmed the strength of the U.S. economy, noting that while inflation has eased significantly, it remains elevated.
He also stated that the recent election results would not impact near-term policy and that current policy continues to be restrictive, with bond market movements reflecting growth expectations.
On Wall Street, the Dow Jones closed flat, the S&P 500 climbed 0.9%, and the Nasdaq gained 1.5%.
Among commodities, gold rose above US$2,700 an ounce, oil rebounded past $75 a barrel, and iron ore prices advanced.
The Bank of England also cut its benchmark interest rate for the second time in three months, reducing it by 0.25 percentage points to 4.75%, marking the first time since mid-last year that the rate has fallen below 5%.
In corporate news, ANZ reported declining profits for the 2024 fiscal year, with a net profit after tax of A$6.54 billion. CEO Shayne Elliott highlighted the intense competition in the banking sector.
News Corp reported a surge in revenue and earnings, largely driven by its real estate investments.
Block Inc recorded a 19% increase in quarterly profits, reporting US$2.25 billion (A$3.37 billion) for Q3.
REA Group posted quarterly revenue of $413 million, up 21% year-over-year, while earnings before interest, tax, depreciation, and amortisation grew 23% to $243 million.
On the bond markets, 10-year and 2-year rates were at 4.553% and 4.056%, respectively.