The Australian share market has finished higher after dovish commentary from Federal Reserve chairman Jerome Powell, although some of the morning's gains petered out in the afternoon.
After rising as much as 0.6 per cent by midday on Thursday, the benchmark S&P/ASX200 index finished just 17.1 points higher, or 0.23 per cent, at 7,587.
The broader All Ordinaries rose 17.5 points, or 0.22 per cent, to 7,849.4.
Overnight the Fed left US interest rates unchanged at 5.3 per cent, as expected, with Mr Powell telling reporters another rate hike - which some feared had re-emerged as a real possibility - was "unlikely".
Mr Powell indicated rate cuts would take longer than many expected a few months ago.
"Readings on inflation have come in above expectations," the powerful central banker said.
Westpac economists Elliot Clarke and Luci Ellis said they now saw September as the most likely timing for the first US rate cut, followed by another cut once per quarter until June 2026.
GSFM investment strategist Stephen Miller said Mr Powell's less hawkish tone led equity markets to rally strongly, bond yields to decline and the US dollar to weaken.
Six of the ASX's 11 sectors finished in the green on Thursday, while five closed in the red.
Consumer staples was the biggest mover, dropping 2.5 per cent as Woolworths fell 4.2 per cent to a nearly four-year low of $30.50 after a disappointing third quarter.
Australia's largest supermarket chain said its group sales rose 2.8 per cent to $16.8 billion in the 13 weeks to March 31, underperforming Coles, which was boosted by its Pokemon collectibles campaign in February and March.
"It was a challenging quarter across the group, with a noticeable shift in customer sentiment and shopping behaviours since Christmas," chief executive Brad Banducci said.
In the financial sector, NAB rose 1.5 per cent to $34.28 as the business-focused bank announced it would increase its share buyback program by $1.5 billion despite a lacklustre half-year.
NAB said it made $3.5 billion in first-half cash earnings, down 3.1 per cent from its last half-year and a slide of 12.8 per cent from the same period in 2023.
The other big banks all finished higher, with ANZ up 0.5 per cent to $28.23, Westpac climbing 0.9 per cent to $26.03 and CBA rising 1.0 per cent to $115.
In the heavyweight mining sector, goldminers mostly gained as the precious metal rebounded to $US2,309 an ounce.
Evolution climbed 0.8 per cent, West Africa Resources rose 5.1 per cent and Northern Star grew 2.6 per cent after increasing its mineral resource estimates.
BHP edged 0.1 per cent higher at $42.38 and Fortescue added 1.0 per cent to $25.57, while Rio Tinto dipped 0.2 per cent to $129.10.
In the consumer discretionary sector, Bapcor plunged 23.9 per cent to a four-year low of $4.40 after shares in the Autobarn owner resumed trading following Paul Dumbrell's shock decision not to join the company just two days before he was set to begin as CEO.
Bapcor downgraded its profit forecasts for the third time in the past eight months, saying it expected to make less second-half profit than the $54.2 million it earned in the first half.
"Trading conditions since our last update to the market have remained challenging as consumers continue to pull back on spending," interim CEO Mark Bernhard said.
The Australian dollar was buying 65.42 US cents, from 64.80 US cents at Wednesday's ASX close.
ON THE ASX:
* The benchmark S&P/ASX200 index finished Thursday up 17.1 points, or 0.23 per cent, at 7,587.0
* The broader All Ordinaries rose 17.5 points, or 0.22 per cent, to 7,849.4
CURRENCY SNAPSHOT:
One Australian dollar buys:
* 65.42 US cents, from 64.80 US cents at Wednesday's ASX close
* 101.67 Japanese yen, from 102.24 Japanese yen
* 61.01 Euro cents, from 60.77 Euro cents
* 52.21 British pence, from 51.89 pence
* 110.02 NZ cents, from 110.00 NZ cents
