The Labor and the Liberal Party, two major political parties in Australia, lobbied independent lawmakers in order to form the first minority government of the country but the poll resulted in hung parliament in 70 years. On the back of this development, the S&P/ASX 200 climbed up 0.1% in the early morning trade but the overall performance was poor as the shares ended flat afterwards. The Australian currency was down 1% against the US dollar on the first day of the week.
Australia's benchmark S&P/ASX 200 index closed flat Monday as investors were indifferent toward the political developments. Uncertain poll outcomes resulted in slipping of the Australian dollar as the currency was trading lower.
At present, there are two elements driving the fate of the Australian economy. Labor Party's controversial plan to impose a new tax on the mining industry is one factor while establishment of national high-speed Internet network (broadband) is the other factor. Since mining has a strong presence in the rural areas of Australia, the 76 seats governing this area will play a major role in shaping the final outcome of the poll. There is a possibility that the mining super-tax plan would be dropped to settle the rural votes. Moreover, the broadband set up plan is worth 43 billion Australian dollars (about $38 billion) and will contribute in concluding the results.
Postal votes of the elections are still being counted and the final results will be out after a week or so.
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