The statement issued after the conclusion of the two-day FOMC meeting confirmed that the Fed is in no rush to tighten monetary policy. As widely expected interest rates were left unchanged at 0-0.25pct and the $600bn of treasury purchases will be seen through to completion. The Fed did also downgrade 2011 US economic growth forecasts from the previous range of 3.4-3.9pct to 3.1-3.3pct, while inflation forecasts were increased.

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Durable goods orders rose by a larger than expected 2.5pct in March. The February result was upwardly revised from a previously reported 0.6pct fall to a 0.7pct rise. Excluding transportation orders rose by 1.3pct in March.

European shares closed at an eight-week high on Tuesday as strong earnings boosted auto and technology shares. Telco giant Ericsson rose 10.8pct after it beat profit expectations. Germany´s Volkswagen and Porsche both gained around 6pct on robust results. Wider gains were tempered by persistent fears that Greece will need to restructure its debt. The Greek banking index fell 3.6pct. The FTSEurofirst index rose 0.3pct. The German Dax gained 0.7pct and the UK FTSE fell 1pt.

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US sharemarkets rallied on Wednesday as the Fed indicated it is likely to maintain accommodative policy despite worries about inflation. General Electric rose 2.7pct after the company´s finance chief said profit growth over the next few years will be the fastest in a decade. The Dow Jones index rose 96pts or 0.8pct with the S&P 500 higher by 0.6pct while the Nasdaq gained 22pts or 0.8pct and closed at a 10yr high.

US treasuries fell on Wednesday (yields higher) as the Fed upped its inflation forecasts. US 2yr yields rose by 4pts to 0.649pct and US 10yr yields rose by 5pts to 3.359pct.

The US dollar slumped against major currencies, after the Federal Reserve signalled it was in no rush to scale back stimulus. The Euro rallied from lows near US$1.4635 to US$1.4785, currently holding near its highs. The Aussie dollar rose from lows near US107.80c to US108.75c, ending US trade near US108.65c. And the Japanese yen traded between 82.70 yen per US dollar to near JPY82.00, ending at JPY82.15.

US crude oil prices rose on Wednesday after the weekly EIA report showed a sharp drop in gasoline inventories. Gasoline stockpiles fell by 2.51 million barrels to the lowest levels since August 2009. The Nymex crude oil contract rose by US55c or 0.5pct to US$112.76 a barrel. The London Brent crude rose by US99c to US$125.13 a barrel.

Base metal prices were mostly weaker on the London Metal Exchange on Wednesday. Speculation that China may once again tighten monetary policy dominated action in early trade. And the Comex gold futures price rose to fresh record highs, up US$13.60 an ounce to US$1,517.10.

News just out - The Reserve Bank of New Zealand (RBNZ)today left the Official Cash Rate (OCR) unchanged at 2.5 percent as expected.

Ahead: In Australia, no economic data is released. In the US, GDP data and pending home sales are released.

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