Australian shares rise despite Morgan Stanley downgrading NAB

Shares rose in Australia on Thursday after the Federal Reserve eased worries about inflation. The central bank did not change its interest rate plans for 2025 and indicated that any inflation from new tariffs would be temporary. The S&P/ASX 200 index climbed 0.7 percent to 7,882.4 points shortly after the market opened. Most sectors experienced gains, especially technology stocks. The All Ordinaries index also gained 0.7 percent. US markets had a positive reaction too, with the S&P 500 rising 1.1 percent. Federal Reserve Chairman Jerome Powell reassured investors by stating that inflation concerns due to tariffs were not a major issue. In addition, Bitcoin surged 5.2 percent, exceeding $86,884. In Australia, despite a downgrade from Morgan Stanley to "equal weight," National Australia Bank (NAB) still saw a 1 percent increase in its stock price. Other major banks also reported gains, with Commonwealth Bank, ANZ, and Westpac rising more than 1 percent each. In corporate developments, Nanosonics shares jumped 10.8 percent after receiving approval for its cleaning tool designed to reduce infection risks in hospitals. Cleanaway Waste Management announced it will buy Contract Resources for $377 million, contributing to a 2.8 percent rise in its stocks. TPG Telecom shares climbed 2.2 percent after the competition watchdog approved its $5.25 billion sale of fiber networks to Vocus Group. Arafura Rare Earths also rose by 9.5 percent after securing a supply deal for neodymium-praseodymium oxide.