17.09.202606:47:17UTC+00ASX 200 Closes 0.4% Higher

The ASX 200 rose 36 points, or 0.4%, to close at 8,732 on Thursday, extending the previous session’s gains as U.S. stock futures advanced following the Federal Reserve’s first interest rate hike since 2023. Analysts said the move strengthened the Fed’s credibility and reassured investors of its determination to rein in inflation.

Domestically, bargain hunting continued after Australian equities touched a near ten-week low earlier in the week, supporting financial, industrial, and logistics stocks. The big four banks climbed between 1.3% and 2.6% after a volatile spell driven by rising expectations for higher local interest rates. Insurers also gained, with QBE advancing 1.1% and Insurance Australia Group up 0.6%.

Energy stocks underperformed as oil prices fell following an unexpected increase in U.S. crude inventories, while mining shares were muted, with BHP slipping slightly and Rio Tinto ending flat. Investors now look ahead to remarks from Reserve Bank Governor Michele Bullock, who is due to testify before Parliament on Friday.