Australia Stocks post solid start to year

The Australian share market finished sharp higher on the first trading day of the new year, Monday, 04 January 2021, with banks and miners leading the surge despite coronavirus clusters in NSW and Victoria continue to boost fears of wider economic lockdowns.

At closing bell, the benchmark S&P/ASX200 advanced 97.15 points, or 1.47%, to 6,684.25. The broader All Ordinaries climbed up 103.05 points, or 1.5%, to 6,953.67.

Shares of bullion miners advanced, as bullion prices hit an eight-week high amid a spike in global COVID-19 cases and prospects of tougher coronavirus control measures. Heavyweights Evolution Mining, Newcrest Mining and Northern Star Resources gained between 3% to 4%.

Shares of materials and resources gained, as iron ore prices extended their bull run into the new year, jumping more than 3% buoyed by tight supply and robust demand. Fortescue Metals Group gained 4.8% to hit a fresh record high, while Rio Tinto added as much as 1.3%.

Banks stocks also advanced, with Commonwealth Bank led gains for the major lenders, adding 2% to close at A$83.75. NAB rose 1.5%, Westpac lifted 1.3%, and ANZ climbed 1.5%.

CURRENCY NEWS: The Australian dollar changed hands at $0.7724 following its rise in the previous trading week from levels below $0.765.

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