Australia Market rises on vaccine hopes, reopening of borders

The Australian share market finished session higher on Tuesday, 24 November 2020, as progress in developing an inexpensive coronavirus vaccine boosted hopes of a swift recovery, while a formal transition approval for US President-elect Joe Biden also lifted sentiment. Queensland's decision to reopen borders with NSW next month a day after NSW and VIC opened theirs, has provided an additional boost.

At closing bell, the benchmark S&P/ASX200 added 82.48 points, or 1.26%, to 6,644.07. The broader All Ordinaries rose 83.44 points, or 1.23%, to 6,855.47.

Vaccine excitement continues to support global markets. AstraZeneca said on Monday its Covid-19 vaccine could be up to 90% effective, cheaper to make and easier to ship than rival vaccines, lifting global equities. Stocks also got a boost after US President-elect Joe Biden received approval to begin the transition to the White House and after a report that he would pick former Federal Reserve Chair Janet Yellen to be the next Treasury secretary.

Energy stocks remained the strongest improvers on Tuesday, lifting by 3.5% as vaccine hopes could boost demand for oil. The price of oil has surged by ~20% in November despite the alarming lift in COVID-19 cases in the northern hemisphere.

Travel stocks remained higher, with Webjet (WEB) up 4.7%, Qantas (QAN) up 3.9% and Flight Centre (FLT) up 3%.

Economic news: Australia Exports Climb 6% On Month In October- Australia's exports grew 6% month-on-month to A$30.53 billion in October, preliminary data from the Australian Bureau of Statistics showed Tuesday. On a yearly basis, exports were down 3% in October. Australia exported a record A$13.46 billion of metalliferous ores, the majority of which was iron ore. Iron ore exports hit a record value of A$10.9 billion. Shipment of gas advanced 18%, which was the first month-on-month increase since March 2020. Meanwhile, exports of non-monetary gold were down 12% and that of petroleum slid 24%. Exports to China grew 7% as China continues to be the main export destination for iron ore. Shipments to Japan and the USA rose 11% and 5%, respectively. Data showed that imports were up 8% in October from September but declined 10% from the last year. Consequently, the trade balance showed a surplus of A$4.84 billion versus A$5.02 billion in the previous month.

CURRENCY NEWS: The Australian dollar was at $0.7353 following an earlier low of $0.7281.

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