Aust stocks open 1% stronger

Local market follows strong Wall St leads higher after Fed's taper call.

The Australian stock market opened more than one per cent higher after the Federal Reserve decision to reduce its monthly bond buying program in the new year sent Wall Street higher.

At the 1015 AEDT official market open, the benchmark S&P/ASX200 index rose 1.09% to 5,151.6 points, while the broader All Ordinaries index increased 1.03% to 5,151.6 points.

Early on Thursday morning, the Fed said it will reduce its bond purchases by $US10 billion a month to $US75 billion, starting in January.

The Dow Jones Industrial Average and the broad-based S&P 500 hit fresh closing in response.

Locally, in economic news on Thursday, the Reserve Bank of Australia is due to release its quarterly bulletin.

In equities news, the NAB, Elders, DuluxGroup and Incitec Pivot all have annual general meetings.

In Australia, the market on Wednesday closed slightly weaker as uncertainty about the US Federal Reserve's stimulus decision hits banks and retailers.

The benchmark S&P/ASX200 index was down 7.1 points, or 0.14%, at 5,096.1 points.

The broader All Ordinaries index was down 6.8 points, or 0.13%, at 5,099.3 points.