Australian shares rise on energy boost, Fed decision in focus

Australian shares inched higher on Wednesday, driven by energy stocks on firm oil prices, while market participants watched developments in the Middle East and awaited the US Federal Reserve’s policy decision. The S&P/ASX 200 index rose 0.3% to 8,699 by 0003 GMT after a 0.9% fall on Tuesday. Crude oil futures were down due to an unexpected build in US crude inventories. Prices hit their highest since May 19 on Tuesday as a slew of events in the Middle East deepened concerns that disruptions to a critical oil-export route could persist for weeks. Investors weighed the risk that higher oil prices could lift inflation further and keep pressure on central banks to raise interest rates. The Fed is widely anticipated to deliver a 25-basis-point rate hike when it announces its policy decision later in the day, according to the CME Group’s FedWatch tool, compared with a 59.4% chance a week earlier. Australian 10-year bond yields eased, but held near 2011-highs. Energy stocks advanced as much as 2% and were on track for their best day since mid-August. Santos and Woodside were up 2.2% and 2.6%, respectively. Healthcare stocks were up 0.8%, with CSL hitting its highest in nearly two weeks. B