Iron ore miners and energy stocks are surging on the Australian market after a rise in commodity prices.
The run is being led by pure play iron ore miner Fortescue Metals which is trading 6% higher at $1.905.
The big miners also are benefiting. Rio Tinto is up 1.87% to 57.20 and BHP almost 1% to $30.75.
Among energy stocks, Woodside Petroleum is up 2% to $35.06, Santos 3% to $7.32, Oil Search almost 5% to $7.59 and Santos 3% to $7.32.
The sector is up more than 2% today and 4% over the last five sessions.
Iron ore was trading stronger overnight by 2% to $US48.06 per ton. Brent oil was up 1.6% to $US59.05 a barrel.
Prices for iron ore have fallen 60% over the last 12 months, putting pressure on the profitability of many of the smaller miners.
Yesterday Atlas Iron requested it be suspended from trading on the ASX while it worked out what to do with its operations. Moody’s said it believed the company had negative cash flow.
The overall market is subdued with the S&P ASX 200 up 0.35%.
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