The Australian share market has risen strongly in early trade, taking cues from Wall Street, as investors bet on the likelihood of a Hillary Clinton win the US presidential elections.
The benchmark S&P/ASX 200 index was up 0.7 per cent within the first hour of trade, with mining and financial stocks leading the gains.
“Everything that happens today will be determined by the US elections,” Australian Stock Report head of trading Chris Conway said.
“The base case is that Clinton wins and we get more certainty about what happens in the US economy. But if that outcome is in jeopardy, we will see a pretty violent shift in the market.”
Overnight, the US stock market rose for a second straight session, helped by early voter turnout estimates that seemingly favour Democrat candidate Hillary Clinton. The Dow Jones industrial average ended up 0.4 per cent, while the S&P 500 gained 0.38 per cent.
In the local market, mining and financial stocks were among the best performers.
Mining giant BHP Billiton rose 1.9 per cent to $23.75, while Fortescue gained 1.5 per cent to $5.66, as iron ore prices continued their gains. Rio Tinto was also up 1.1 per cent at $55.39, unaffected by its announcement of suspending its energy and minerals boss Alan Davies in relation to certain payments in Africa.
Shares in all the big four banks were up between 1.0 to 1.5 per cent, with traders saying yield stocks would be in focus as the US election results unfolded.
Energy shares were trading mixed, with Woodside up 0.4 per cent at $28.70, but Santos and Oil Search down 1.9 per cent and 0.2 per cent, respectively.