FX.co ★ Australian Shares Rise for 3rd Session

The S&P/ASX 200 index edged up by 0.2%, reaching approximately 8,740 in Friday morning trading. This marks the third consecutive session of gains, led by robust performances in the energy sector which mitigated declines in Rio Tinto shares. The energy sector saw a 1.8% increase, the most significant in nearly two years, driven by rising oil prices due to tensions involving US threats against Iran and the Trump administration's efforts to regulate Venezuela's energy exports. Notably, oil and gas firms Woodside Energy and Santos Limited both surged over 2%, while Origin Energy posted a 0.5% rise. Additionally, gold mining companies saw a 1% uptick, buoyed by elevated bullion prices, with Northern Star climbing 1.4%.

Conversely, Rio Tinto's shares dropped by 5%, reaching their lowest point since December 19. This decline followed the company’s announcement of preliminary discussions regarding a potential acquisition by the smaller competitor, Glencore, a merger that could result in the formation of the world’s largest mining company, with an estimated valuation of approximately $207 billion. Rio Tinto emerged as the biggest loser on the benchmark index, heading towards its most significant downturn since July 2022, contributing to a 0.1% decrease in the overall mining sector. Strong commodity prices, however, helped to cushion the overall impact.