The Australia 200 CFD Index closed 0.2% firmer, with gains among industrials and energy offsetting materials weakness.

On Wall St overnight, stocks were flat to slightly higher as economic data showed the US economy is expanding without pickup in inflation, which is positive for the outlook for interest rates.

US consumer prices were unchanged in March to stand 2.1pct higher than a year ago.

The Australia 200 CFD Index finished 0.2% firmer, with defensive sectors leading the way.

The Australian share market has faded from early highs, due to falls from index leader BHP Billiton (BHP) and the energy sector. The All Ordinaries Index (XAO) is down 0.4pts to 4866.5.

The market put in a strong performance at the open on the back of a firm lead from Wall Street and PPI figures from the US showing that prices at the wholesale level are currently a non-issue for the broader economy.

In the US overnight, stocks and commodities all rallied strongly, with the Dow Jones Industrial Average closing at a 17-month highs after a drop in US producer prices underscored the Federal Reserve's opinion that inflation is not a threat to low interest rates.

US producer prices fell by 0.6pct in February as gasoline prices fell.

A strong finish to the day helped by postive comments from the World Bank about China's growth prospects.

All eyes were on the statement from the FOMC early this morning. The committee kept the language of exceptionally easy monetary policy at which point the Dow rallied.

So the US markets march on with the S&P closing up 0.8% at 1159, the highest close since 1st Oct 2008.

The US Federal Reserve held its benchmark target rate at 0-0.25pct.

The Australian share-market closed marginally higher today, although investors did pull back ahead of the US Federal Reserve's two day policy meeting.

The ASX 200 again comes off the intra day high, really sturggling to hold the 4800 level.

The market drifted today. With little by the way of leadership from overseas markets, there was a lack of momentum in the market.

It seems we are in for another lacklustre open, with the Australian 200 CFD index excepted to unwind at 4793, up 9 points from yesterday's close.

US industrial production rose by 0.1pct in February, in line with market expectations. Manufacturing and consumer good production eased.

The Australian share market fell into the red in afternoon trade, as futures markets suggested that Wall Street would have a shaky start to the trading week and most Asian markets declined.

The Australia 200 CFD Index closed 0.7% lower, with selling among industrials and materials detracting the bulk of the points.