The Trump administration’s tariffs and the associated stock market rout have had an immediate negative impact on Australian consumer sentiment. Westpac’s Consumer Sentiment Index dropped 6% to 90.1 in April, falling to a six-month low. Sentiment was 10% lower amongst those surveyed following the US tariff announcement. Perversely, consumers were less confident on the prospect
Victoria has the highest per capita state debt and the nation’s lowest (AA+) credit rating. Victoria also has the worst debt trajectory in the nation, according to ratings agency S&P Global. A new report card from the Institute of Public Affairs (IPA) has ranked Victoria as the highest taxing state in Australia, with state taxes
Always too hawkish, Wazza McKibbin is too hawkish again today. Modelling by Australian National University economist Warwick McKibbin and KPMG chief economist Brendan Rynne, released separately on Monday, found Trump’s tariffs would cause the Australian dollar to depreciate, sparking a near-term resurgence in inflationary pressures and putting pressure on household budgets. McKibbin, a former Reserve
The Australian’s Tom Dusevic published a strange report claiming that ‘Big Australia’ is over. “Forgive me for reviving an ancient tool of voter vibe but the worm has turned on Big Australia. The post-pandemic people surge is fading”, Dusevic wrote. “Whoever wins on May 3 will inherit a normal migration inflow, but the pandemic’s long
The Market Ear says maybe. Oversold superlatives Earlier today (here) we referred to the classical quote: “be greedy when others are fearful”, pointing out among other things just how extremely oversold this had become: “We have not seen this oversold index futures in “forever”. Oversold can obviously stay oversold for longer than most think possible,
This timeline is getting crazier as Wall Street initially followed other stock markets in crash mode before rallying on fake tweets about nonsensical tariff pauses while Diaper Don spat his dummy about the Chinese counter tariffs while announcing “negotiations” with other countries were supposedly underway. The Europeans are being more strategic about things alongside the
The global trade war has escalated with US President Donald Trump threatening China with an added 50% tariff, which would take the total levy to 104%. On his social media account Blue Sky, President Trump announced retaliatory action if Beijing doesn’t drop its 34% tariff on US goods. “Don’t be Weak! Don’t be Stupid!”, President
DXY is back and EUR soft. AUD lol. Lead boots are OK. Gold margin call is a measure of market extremity. Oil to the rescue. Copper oh dear. Big mining megabear. EM not so bad. That’s the credit stress we’ve been looking for. But those are not the sovereign yields that the Bessent Plan needs.
Christopher Joye, the Chief Investment Officer at Coolabah Capital Investments, made an appearance on Mark Bouris’ podcast, sharing his insights on the significant consequences of Trump’s tariffs, the underlying issues facing China, and the potential for Australia to become entangled in a global trade war. Joye explained how Trump’s tariffs will result in Australia being
Well hasn’t this been a fun start to the trading week! A proper bath of blood here on Asian markets after the epic volatility from Friday on Wall Street as it looks like all the 2024 gains will be wiped out as the US at least will enter a bear market. All risk markets are
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