Australian stocks hit highest since December 2007
|- Australian stocks are trading at 12-year highs this Monday morning.
- Australian PM Scott Morrison’s surprise miracle win and tax cut pledge is likely pushing stocks higher.
Australian Prime Minister Scott Morrison’s surprise victory in weekend election is boding well for the domestic stock market.
The S&P/ASX 200 is currently trading at 6,474, the highest level since December 2007, representing 2% gains on the day.
Morrison’s Liberal-National coalition will secure 77 seats in the 151-member lower house, the Australian broadcasting Corp. projected earlier today.
Prime Minister’s victory is being called the biggest come-from-behind win in a generation. After all, the coalition was trailing in most opinion polls.
The election results indicate the voters rejected opposition’s pledge to redistribute wealth and boost the minimum wage growth and have accepted Morrison’s pitch for economic stability. Just hours after claiming victory, the Prime Minister pledged to deliver tax relief, which could boost consumer spending and help shore up the economy.
While Australia stocks are solidly bid, other regional indices are also flashing green. Japan’s Nikkei is currently up 0.60% on the day and South Korea’s Kospi is flashing 1% gains. The futures on the S&P 500 are also up 0.40%.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.