Global markets bounce; investors pile in; leaders face off
Published: April 08, 2025
Global markets bounce; investors pile in; leaders face off
News in brief
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The ASX jumped more than two per cent yesterday, bouncing from the big falls of the previous three sessions. It was the best single session since November 2022. Tech and energy companies led the way, though investors warn that the turmoil isn’t over yet. Close to 90pc of stocks rose yesterday. Helping sentiment are expectations that the RBA will cut rates when its board meets in May, with some calling for a 50 basis point reduction.
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The two political party leaders faced off last night in the first debate, with no clear-cut winner. It was a fairly tame affair, with the economy, healthcare and energy costs taking centre stage. There were questions on handling Donald Trump, funding for public education and universities and immigration. It took 17 minutes before we got to cost-of-living issues, which dominated the rest of the debate.
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Consumer confidence in Australia has taken a tumble amid the trade tariff trade war, with sentiment falling sharply in April, erasing six months’ worth of gains, according to the Westpac-Melbourne Institute Index. Business confidence is also negative, according to a National Australia Bank survey, taken before the tariff announcement.
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Retail traders are playing the share market in recent sessions, with investing platforms reporting record trading volumes. Retail investors seem to want to 'buy the dip'. The big American tech stocks, global ETFs and gold are among the most popular assets, according to the AFR. Woodside, BHP and some of the big banks are also favourites.
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Commonwealth Bank and Westpac are considering removing the 16-digit numbers from their credit and debit cards, a move Mastercard argues will reduce fraud by preventing criminal hackers from stealing card details, according to the AFR. Numberless cards would be confirmed with an email address, linked to a user’s biometric data, rather than a card number.
Fear-o-meter
Meanwhile, back in Australia, there’s an election campaign going on. Not that anyone is taking too much notice. I can’t imagine the ratings for last night’s first debate between the leaders could have been very high.
Until the last 48 hours, the economy hasn’t played much of a role in campaigning. Instead the PM has been talking about healthcare and infrastructure, and Peter Dutton has been talking about petrol prices (he has visited five service stations in five days) and infrastructure.
The carnage in financial markets means the the economy is now getting a run. Both leaders are working hard to not talk too much about a recession. But its shadow is looming.
Which leader is best equipped to run the economy as it stutters, and who is best to handle Donald Trump, are emerging questions for the electorate, and will play a crucial role in the outcome of the poll, which is just three-and-a-half weeks away.
Who's talking today?
"Small caps always get unfairly tarnished in times of volatility. Shoot first, ask questions later. But in this environment, I think they should revert a little bit quicker."
Following a volatile couple of days on the ASX, Sam takes Sean Aylmer through the opportunities he's seeing in small and mid cap stocks, and explains why he likes these three companies:
- Judo Bank
- Eagers Automotive
- Cinema and hotel operator EVT
It’s Wednesday the 9th of April 2025. Global equity markets, including the ASX, bounce. PM Anthony Albanese and Opposition leader Peter Dutton face off over the cost-of-living crisis, health and the economy, and consumer confidence takes a tumble. Plus retail investors buy up US tech stocks, BHP and ETFs, while Commonwealth Bank and Westpac mull dropping numbers on credit cards.
Greed-o-meter
| Rank | Film | Opening Weekend |
|---|---|---|
| 1 | Avengers: Endgame (2019) | $1,223.6 million |
| 2 | Avengers: Infinity War (2018) | $640.5 million |
| 3 | Spider-Man: No Way Home (2021) | $600.5 million |
| 4 | The Fate of the Furious (2017) | $541.9 million |
| 5 | Star Wars: The Force Awakens (2015) | $529.0 million |
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Who said cinema was dying? A Minecraft Movie made $US301 million worldwide when it opened last weekend - the highest-ever opening weekend for a film based on a video game. But even a solid figure like that doesn't land it in the five best opening weekends. In fact, it comes it at number 43, well behind these juggernauts: