Anthony Albanese has become Australia’s 31st Prime Minister leading the Australian Labor Party to a decisive win against the Scott Morrison led Coalition of the Liberal and National Parties. Voters ultimately decided that the Coalition had not properly addressed the need for an Integrity Commission and concerns regarding climate change. Over the course of the election it became apparent that while Mr Albanese has his roots in the left faction of the Labor party, he has been driven to the centre in order to improve his and his party’s electability.

This drive to the middle ground partly explains why the ASX has been relatively flat since the start of the week. Australia remains one of the favoured investment destinations for many portfolio managers, largely due to its exposure to commodities that are currently in high demand, base metals such as copper, iron ore and nickel. This also has a positive flow on effect for the country’s banking stocks. Mr Albanese’s appointment to the top job in Australia does nothing to change this. Instead, investors remain focussed on the outlook for inflation, scarcity of resources such as the US baby formula shortage and the possibility of a recession at some stage next year.

After an initial positive reaction to Australia’s Covid-19 pandemic response voters turned on Mr Morrison and the Coalition Government as issues such as inflation started to bite. Recently Grant Robertson, the Minister of Finance, presented the annual Budget to Parliament in New Zealand. Broadly speaking it has received a lukewarm response. It has been observed by some commentators that New Zealand facing high inflation and rising interest rates may lead to the current Government suffering the same fate next year as what the Australian Coalition Parties endured. Only time will tell.