Miners lift the ASX 200 index higher as Albania’s Labor Prime Minister is sworn in and global stock markets recover

Australian shares rose on Monday, boosted by mining stocks, as Labor leader Anthony Albanese was sworn in as the country’s 31st prime minister, after nine years of conservative coalition rule.

The ASX 200 rose 37 points, or 0.5 percent, to 7,182 at 11:23 AM ET.

Albanese promised a “journey of change” as he pledged to tackle climate change, the rising cost of living and inequality.

In the stock market, miners rose 1.6 percent and touched their highest level in more than two weeks after iron ore prices rose on Friday.

Shares of BHP Group, Rio Tinto and Fortescue Metals Group rose between 2.1 percent and 3.8 percent.

Incitec Pivot stock fell 3.2 percent after rising 7.5 percent when the fertilizer maker said it would separate its explosives and fertilizer business.

Energy stocks rose 1.1 percent, benefiting from higher oil prices. Major oil and gas exploration companies Woodside and Santos gained 1.7 percent and 1.9 percent, respectively.

Local technology shares were among the biggest losers on the local bourse, falling 0.3 percent as they tracked the weak end on Wall Street last week.

Block shares fell 3.5 percent, while Wise Tech Global fell 0.8 percent.

Financial fell 0.1 per cent, with the Commonwealth Bank of Australia down, and Australia and New Zealand Banking Group down 0.1 per cent and 0.2 per cent, respectively.

Notable movers were Codan (+14.4%), Sheiks (+10.1%), and A2 Milk (+3.5%).

The Australian dollar rose to 70.90 US cents at 11:24 AM EST.

Wall Street mixed

Global stock markets rebounded on Friday after the S&P 500 index pared losses that briefly pushed it into bear market territory.

China cut the key interest rate for five-year loans, which influences mortgage rates, by 15 basis points in a sharper-than-expected drop as authorities seek to mitigate the impact of an economic slowdown.

While a rally late Friday stopped the S&P 500 from confirming a bear market, Wall Street gloom sent the benchmark index down for the seventh consecutive week, an event that has occurred only five times since 1928, according to S&P Dow Jones Indexes. .

How long it takes to cash out in stocks will depend on when inflation collapses, said Peter Toze, chairman of Chase Investments in Charlottesville, Virginia.

The S&P 500 closed 0.01 percent higher after falling 2.27 percent at one point or less from the level that would confirm a bear market – a 20 percent drop from a record closing high on Jan. 3.

The Dow Jones Industrial Average rose 0.03 percent, and the Nasdaq Composite was already down 0.3 percent.

Stephen Outh, chief equity investment officer at Federated Hermes, said stock valuations need to fall and the expected return on investments, and the discount rate, should go up.

“The market is starting to get the idea that this could be a new world where the discount rate on risky assets is no longer zero,” Oth said.

“You see all these different areas of the market being bombarded at the same time and it was very worrying for investors,” he added.

The MSCI gauge of stocks in 47 countries closed 0.37 percent higher, but still fell for the seventh consecutive week, the longest losing streak since the index was launched in 1990.

Earlier in Europe, the regional Stoxx 600 index rose 0.73 percent.

US Treasury yields fell for the third consecutive session amid concerns about growth prospects. The yield on the benchmark 10-year note fell 6.5 basis points to 2.79 per cent.

Gold rallied, heading for its first week of gains in five weeks due to continuing concerns about economic growth and the dollar’s decline during the week.

Oil prices steadied, on course for little change during the week as a planned European Union ban on Russian oil offset concerns that slowing economic growth will hurt demand.

Brent crude rose, trading at $112.91 a barrel by 10:36 AM ET.

ABC/Reuters

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