Well, it's still hard to believe, but the long and hard six-week federal election campaign is finally over. Australia has a new prime minister and a new government, just as opinion polls predicted.
Although events like an election are typically somewhat 'priced in' by markets leading up to it, the incorrect opinion polls covering the 2019 election no doubt still had everyone hanging on the actual result on Saturday night. But unlike last time, the polls were correct.
So today, let's look at how ASX shares are reacting to the events of the weekend. Specifically, let's look at the big ASX iron ore miners.
So on the whole, the ASX is having a pretty strong start to the first day of a new government. At the time of writing, the S&P/ASX 200 Index (ASX: XJO) has risen by 0.52% and is closing back in on 7,200 points. But what of mining shares?
In elections gone by, the mining industry was a red hot election issue. No doubt there are some readers who will remember the 'mining tax' debate of a few years ago. But this election, it's probably fair to say that mining didn't play a huge role in the election campaign.
And there doesn't seem to be a whole lot of difference between the two major parties when it comes to the treatment of the mining industry this time around.
Image source: Getty Images
How are ASX mining shares reacting to Labor's win today?
But let's see how the ASX 200 iron ore giants are reacting to a new Labor Government today.
So first up, let's check out BHP Group Ltd (ASX: BHP), the undisputed leader of the ASX 200's resources sector. It's a very happy day for BHP shares, with the Big Australian rising by a healthy 2.03% so far today to just over $48 a share.
BHP's stablemate Rio Tinto Limited (ASX: RIO) is also having a happy day. Rio shares are presently up 1.88% at just over $110 each.
But it's Fortescue Metals Group Limited (ASX: FMG) that is really basking in the election's afterglow today. Fortescue shares are currently up a pleasing 3.57% at $20.87 each so far.
However, it's likely that these moves higher are less about what happened on the weekend, and more about the rising iron ore price we have seen over the past few days. Iron ore is now going for more than US$130 a tonne, which would be doing a lot to boost confidence in the ASX's biggest miners today.
