Australian Shares Post Small Gain After US Fed Keeps Rates Steady

Australian shares rose on Thursday after the US Federal Reserve maintained interest rates and warned of a further delay in cutting interest rates.

The S&P/ASX 200 Index went up 17.10 points, or 0.2%, to 7,587.00.

The US Fed said it will take longer than expected until it has “greater confidence” that price increases have sustainably slowed to its 2% target.

On the domestic front, Australia’s trade balance narrowed to a surplus of AU$5.02 billion in March from AU$6.59 billion in February, driven by an increase in imports.

Australian dwelling approvals rose 1.9% in March to 12,947 while private sector houses increased 3.8% to 8,891.

In company news, Namoi Cotton NNAM 24.2% shareholder Samuel Terry Asset Management supports Olam Agri's AU$0.66 cash per share takeover offer for the cotton ginning company. Shares of Namoi Cotton closed 13% higher Thursday.

Woolworths Group WOW said group sales rose 2.8% to AU$16.8 billion in the fiscal third quarter compared with the prior corresponding period. Shares of the supermarket giant fell 4%.