Finance News Update, what you need to know

Finance News Update, what you need to know

WORLD FINANCE UPDATE:

The Australian dollar is sharply higher after the US Federal Reserve's dovish tone indicating it expected tepid growth in the world's largest economy.

At 0700 AEDT on Thursday, the local unit was trading at 75.60 US cents, up from 74.89 US cents on Wednesday.

And the Australian share market looks set to open higher following gains on Wall Street after the US Federal Reserve left interest rates unchanged and signalled fewer rate rises for the year.

At 0645 AEDT on Thursday, the share price index was up 34 points at 5,160.

ELSEWHERE:

WASHINGTON - The Federal Reserve has held interest rates steady and indicated that moderate US economic growth and "strong job gains" would allow it to tighten policy this year.

LONDON - British finance minister George Osborne has unveiled a new sugary drinks tax to fight childhood obesity, as he blamed a "dangerous cocktail" of risks from the global economy for derailing his fiscal plans.

WASHINGTON - Underlying US inflation increased more than expected in February as rents and medical costs maintained their upward trend, which could keep the Federal Reserve on course to gradually raise interest rates this year.

WASHINGTON - Construction of new homes rose in February to the highest level in five months, but applications for new construction were weak for a third month.

HARARE - Zimbabwe expects a loan from the International Monetary Fund in the third quarter of this year, the first since 1999, after paying off foreign lenders by the end of June.

LONDON - Deutsche Boerse AG and London Stock Exchange Group Plc have agreed to come together in a $US30 billion ($A40 billion) deal to create a European trading powerhouse better able to compete with US rivals encroaching on their turf.

NEW DELHI - US seed company Monsanto is welcome to leave India if it does not want to lower prices of genetically modified cotton seeds as directed by the government, a minister has said, in a sign the rift between New Delhi and the firm is widening.


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Source: AAP



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