The Rio Tinto Limited (ASX: RIO) share price is rocketing higher today despite no news having been released by the iron ore giant.
And itâs not alone in its surge. Itâs joined in the green by many of its S&P/ASX 200 Materials Index (ASX: XMJ) peers as the mining sector leads the market with a 3.43% gain.
The Rio Tinto share price is up 4.58% right now, trading at $107.335. Meanwhile, the S&P/ASX 200 Index (ASX: XJO) has lifted 0.01%.
So, what might be bolstering the iron ore giant’s share price and those of its peers on Monday? Letâs take a look.
What’s driving the Rio Tinto share price higher today?
The Rio Tinto share price is taking off again amid reports China will ease some COVID-19 restrictions.
Today’s gain follows the 4.4% leap posted by the stock on Friday amid the latest US inflation figures, finding the nationâs consumer price index lifted just 7.7% over the 12 months to 31 October.
News China will relax some of its COVID-19 restrictions broke over the weekend. The slight easing of the countryâs restrictions will see close contacts quarantining for fewer days while secondary contacts will no longer be recorded, BBC News reports.
Some inbound travellers will also spend less time in quarantine under the changes and airlines will no longer face major consequences if a certain number of passengers test positive for the virus after landing, according to CNN Business.
The move doesnât appear to represent the beginning of the end of Beijingâs strict COVID-zero measures. Indeed, restrictions were also tightened in Guangzhou over the weekend, the Associated Press reports, via PBS.
However, it might have been enough to bolster confidence in markets closely tied to China, such as iron ore. Iron ore futures lifted 2.9% to US$90.79 on Friday.
The Rio Tinto share price has gained 5% year to date and 13% over the last 12 months.
Comparatively, the ASX 200 has slumped 4% this year and 4% since this time last year.
The post Why is the Rio Tinto share price having such a cracking run on Monday? appeared first on The Motley Fool Australia.
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More reading
- Why are ASX 200 mining shares going nuts on Monday?
- China’s property crash has decimated the iron ore price. So what’s the outlook for Rio Tinto shares?
- Leading brokers name 3 ASX shares to buy today
- Why are ASX 200 mining shares bolting out the gates on Monday?
- Why is the Rio Tinto share price having such a stellar start to the week?
Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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