The BHP Billiton Limited (ASX: BHP) share price hit a six-month high yesterday as the miner enjoys the tailwind of the rising iron ore price. Since the November 2016 election of U.S. President Trump global commodity prices and stock markets have been on a tear, as investors anticipate fiscal loosening and rising inflation.
In fact iron ore prices hit a 4-month high overnight as Chinese demand for the steel-making ingredient lifts on the back of China's mega-construction programs.
Below is a chart of the rising BHP and Rio Tinto share prices since November 2016.
Source: Google Finance
Just last week Rio Tinto revealed plans to hand back up to $US3 billion to investors via dividends and share buybacks as a result of strong iron ore prices, with investor expectations sky high for when BHP hands down its full year profit report to the market within the next two weeks. The Big Australian is more diversified than Rio and is likely to enjoy investor support into Christmas 2017 if iron ore prices stay around US$75 per tonne, or even screech higher.
