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Aussie market opens higher following U.S. rate increase

Xinhua, December 17, 2015 Adjust font size:

Aussie stocks have continued yesterday's rally at Thursday's open after strong gains on Wall Street followed the U.S interest rate increase, paving the way for a likely Santa rally to close the year.

At the 10.15am (AEDT) official market open, the benchmark S&P/ASX200 index was up 47 points, or 0.93 per cent, at 5,075.4 points, while the broader All Ordinaries index was up 46.4 points, or 0.91 per cent, at 5,125.1.

The U.S. Federal Reserve lifted rates by 0.25 basis points to between 0.25-0.50 percent, the first time in nearly a decade, which prompted a rally on Wall Street as the market judged the Fed's statement to be supportive of risk assets, including equities.

"The market is reacting well to the Fed's decision, which reflects the strength in the U.S. economy," IG's market analyst Angus Nicholson said.

That rally is transferring into the Australian market with high-yielding blue chip, whose valuations have dropped in the local sell-off in past few weeks, in demand, Nicholson said.

"We are perfectly poised to see a rally towards the end of the year," Nicholson added.

At 1025 local time, ANZ was up 1.81 percent, the Commonwealth Bank of Australia rose 1.52 percent, the National Australia Bank added 1.41 percent and Westpac was 1.59 percent stronger.

BHP Billiton slipped 0.99 percent, rival Rio Tinto however was up 1.98 percent and gold miner Newcrest bounced 2.62 percent.

Oil Search is down 2.09 percent, Santos lost 2.17 percent and Woodside Petroleum is 0.78 percent weaker.

Wesfarmers and Woolworths had gained 1.37 and 1.17 percent respectively.

Qantas is 2.37 percent higher and Telstra is 2.16 percent in the green. Endit