The Australian share market rallied today, with investor sentiment boosted ahead of an expected injection of stimulus by the US Federal Reserve. Tepid economic data suggesting the likelihood of a rate hike tomorrow has now decreased also boosted buying enthusiasm. The All Ordinaries Index (XAO) gained 37.6pts or 0.8pct to 4771 while the S&P/ASX 200 Index (XJO) firmed by 36.9pts or 0.8pct to 4698.5.

Financial stocks posted some of the best gains, with the sector rising 1.1pct. Shares in Westpac (WBC) firmed by 1.5pct to $23.05 while the Commonwealth Bank (CBA) was up 0.8pct to $49.31 and the NAB (NAB) increased by 1.7pct to $25.89. Shares in the ANZ (ANZ) were firmer by 0.4pct to $24.90 while Macquarie Group (MQG) increased by 0.6pct to $36.40.

The miners also performed well, despite weaker metals trade in London. Shares in BHP Billiton (BHP) added 0.9pct to $42.30 while Rio Tinto (RIO) was up 0.4pct to $82.99 and Fortescue Metals Group (FMG) added 1pct to $6.31. Gold miner Newcrest Mining (NCM) gained 1pct to $40.37 after the price of gold rallied more than 2.5pct over the course of the week.

Energy stocks advanced as the price of oil advanced in Asian trade. At 4pm AEDT the Nymex contract added 0.4pct to US$81.79 a barrel. Shares in Woodside Petroleum (WPL) gained 0.7pct to $43.79 while Santos (STO) firmed by 0.7pct to $12.71 and Oilsearch (OSH) was up 1.3pct to $6.46. Caltex (CTX) firmed by 0.2pct to $11.64.

Telstra (TLS) gained 0.4pct to $2.68.

Retail stocks were mixed. Shares in Woolworths (WOW) fell 0.6pct to $28.19 while Wesfarmers (WES) closed down 0.2pct to $33.08. David Jones (DJS) added 0.8pct to $4.79 while Harvey Norman (HVN) fell 0.3pct to $3.32 and Kathmandu (KMD) was up 2pct to $1.325.

Shares in the Ten Network (TEN) advanced by 1.4pct to $1.46 with James Packer and Lachlan Murdoch both offered seats on the company's board. Consolidated Media Holdings (CMJ) added 0.6pct to $3.37 while Seven Group Holdings (SVW) gained 0.1pct to $7.38.

Clothing manufacturer Pacific Brands Group (PBG) gained ..pct to $... after agreeing to sell its Dunlop Foams and Sleepmaker business to Sleepyhead for $55 million. The deal involves Pacific Brands acquiring Sleepyhead´s Australian carpet underlay business (Wonderlay) for a nominal amount.

In economic data today, the TD Securities-Melbourne Institute monthly inflation gauge rose by 0.3pct in October after lifting 0.1pct in September, and 0.2pct in August. Importantly other underlying rates of inflation were relatively tame in October. The trimmed mean rose by 0.2pct and the inflation measure that excludes volatile items was flat in October.

The Performance of Manufacturing index rose from nine-month lows, up by 2.1 points in October to 49.4. Any reading below 50 means the manufacturing sector is contracting. Across the sub indices, production rose from nine-month lows, however new orders slumped to a 16 month low, while exports tracked to the weakest levels in 11-months.

According to the Australian Institute of Petroleum the national average retail pump price fell 0.3 cents a litre last week to 123.6 cents a litre. Over the next fortnight CommSec expects pump prices to trend sideways as the strengthening Australian dollar largely negates any increase in regional oil prices.
The Bureau of Statistics house price index rose by 0.1pct in the September quarter to stand 11.5pct higher than a year ago. The data is consistent with the RP Data-Rismark index that is tracked by the Reserve Bank.
HSBC's China Purchasing Managers' Index rose from 52.9 to 54.8 in October - a six month high. The measure of prices is at a 27-month high.

The Australian dollar edged higher against all the major currencies and at 4pm AEDT was worth US98.83c, £0.6154 and €70.63c.

On the market overall, a total of 2.24 billion shares were traded, worth $3.96 billion. 641 were up, 484 were down and 373 were unchanged.

At 4.30pm AEDT on the ASX24, the Share Price Index (SPI) futures contract was at 4701, up 54pts.

Ahead tonight, personal income, the ISM manufacturing index and construction spending data are all due in the US.