Money

Vic, NSW slip as SA takes the economic lead

Published

1 year ago

January 29, 2024

Ahron Young

The CommSec State of the States report has unveiled South Australia as the surprising economic leader among Australia’s states and territories for the first time in the history of this quarterly survey.

The report, which analyses the economic performance of different regions across the country, provides valuable insights into the economic momentum and growth rates of Australia’s diverse regions.

Overall, the economic performances of Australian states and territories continue to be bolstered by robust job markets and a substantial increase in population, even as interest rates are on the rise.

Higher borrowing

However, these economies have faced a slowdown in response to higher borrowing costs and inflationary pressures, with their future trajectories closely tied to the course of inflation amidst rising interest rates.

South Australia clinched the top spot in this quarter’s rankings, surpassing its counterparts for the first time in 14 years of the report’s existence.

The next Australian city to host the Olympics

South Australia excelled in four out of the eight key economic indicators: relative economic growth, relative unemployment, construction work done, and dwelling starts.

Second position

Victoria and New South Wales shared the second position in the rankings, followed by Western Australia in fourth place, and Tasmania in fifth.

The Australian Capital Territory secured the sixth position, while Queensland and the Northern Territory landed in seventh and eighth places, respectively.

When measuring annual growth rates across the eight key indicators, Western Australia emerged as the leader, followed closely by Queensland, Victoria, and New South Wales.

South Australia came in fifth, with the Northern Territory, the ACT, and Tasmania occupying the remaining spots.

Western Australia demonstrated its dominance by leading in annual growth rates across three of the eight indicators, while the Northern Territory led in two indicators. Queensland, South Australia, and the ACT each led in one of the indicators.

Top position

The analysis of this quarter’s results revealed that South Australia’s ascent to the top position was fueled by significant progress in construction-related sectors and overall economic growth. Looking forward, trends in job markets, consumer spending, and housing will continue to be crucial, with Queensland, New South Wales, and Western Australia showing promising economic momentum.

The methodology employed in this report assessed the performance of each state and territory by comparing their economic indicators to decade averages.

This approach allowed for a comprehensive understanding of how each economy was performing relative to what would be considered ‘normal’ in their specific context.

As Australia’s economic landscape continues to evolve, the CommSec State of the States report remains a valuable tool for policymakers, investors, and the public, shedding light on the relative strengths and weaknesses of different regions across the country. With South Australia taking the lead in this quarter’s report, the economic competition among Australia’s states and territories is more dynamic than ever.

Money

Dow struggles, investors lose confidence amid trade fears

Dow on track for worst April since 1932 amid trade uncertainty and investor ‘no confidence’ signals, as losses deepen.

Published

9 hours ago

April 22, 2025

Ahron Young

Dow on track for worst April since 1932 amid trade uncertainty and investor ‘no confidence’ signals, as losses deepen.

In Short

The Dow Jones fell almost 1,000 points, heading for its worst April since 1932, with investors worried about trade restrictions and the future of the Federal Reserve Chairman.

Amidst declining stock confidence, traditional safe assets like bonds are under pressure, while gold prices have soared as investors seek safety.

The Dow Jones Industrial Average dropped nearly 1,000 points on Monday, heading towards its worst April since 1932. The S&P 500 has recorded its worst performance for any president at this stage since 1928.

Investors are concerned about trade restrictions and the potential removal of Federal Reserve Chairman Jerome Powell by President Trump, leading to fears of further losses. Many doubt that the administration’s trade negotiations will provide timely relief.

Traditional safe assets like government bonds and the U.S. dollar are also under pressure, limiting safe investment options during this instability. Chief investment officer Scott Ladner noted that this reflects a widespread “no confidence” sentiment among investors.

Tax cuts and deregulation

Following Trump’s election, stock indexes initially rose due to optimism around tax cuts and deregulation. However, the introduction of aggressive tariffs sparked significant market declines. Although there was some retraction of tariff plans, markets have not stabilised.

Typically, bond prices should increase during stock declines, but yields on 10-year U.S. Treasurys have risen, indicating a sell-off in government bonds.

The U.S. dollar has weakened due to economic concerns and Trump’s tensions with the Fed, hitting a three-year low. In contrast, gold prices have surged to all-time highs as investors seek safer assets.

Wall Street sentiment is declining, with bearish expectations remaining high for eight consecutive weeks, marking a record for prolonged pessimism among individual investors.

Money

Trump warns of economic slowdown unless interest rates are slashed

Trump criticizes Fed’s Powell over interest rates, warning of economic slowdown, as markets react sharply.

Published

15 hours ago

April 22, 2025

Nathan Langridge

Trump criticizes Fed’s Powell over interest rates, warning of economic slowdown, as markets react sharply.

President Donald Trump has once again lashed out at Federal Reserve Chair Jerome Powell, claiming the U.S. economy could “slow down” if interest rates aren’t cut immediately.

Markets reacted sharply, with bond yields jumping and equities falling as investors brace for a possible standoff between the White House and central bank.

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Money

Dow falls nearly 1,000 points amid market turmoil

Dow Drops Nearly 1,000 Points as Market Turmoil Grows Amid Tariff Concerns and Fed Leadership Threats.

Published

18 hours ago

April 22, 2025

Ahron Young

Dow drops nearly 1,000 points as market turmoil grows amid tariff concerns and Fed leadership threats.

In Short

The stock market fell significantly on Monday, with the Dow losing nearly 1,000 points, raising concerns over President Trump’s trade policies and Federal Reserve leadership.

Additionally, the dollar plummeted to multiyear lows, while gold prices surged to a record high.

On Monday, the stock market experienced a significant decline, with the Dow industrials closing nearly 1,000 points lower. This downturn is part of a troubling trend, as April is on track to be the worst month for the market since 1932.

The value of the dollar also fell, reaching multiyear lows against major currencies like the euro.

Investor concerns are mounting over President Trump’s ongoing tariff war and his threats to remove Federal Reserve Chairman Jerome Powell. On social media, Trump called for lower interest rates, suggesting that economic slowdown is possible if action is not taken promptly.

National Economic Council Director Kevin Hassett indicated on Friday that the administration is dissatisfied with Powell’s performance and is considering his potential removal.

Export worry

Data from South Korea revealed a significant decrease in exports to the United States this month, further heightening market anxiety.

All major stock indexes reported losses, with the Nasdaq witnessing the largest decrease of around 2.5%. Key technology shares, including Tesla, Nvidia, and Apple, also fell sharply.

The ICE U.S. dollar index decreased by over 1%, marking its lowest value in three years against a basket of currencies. Treasury yields increased, the 10-year note reaching 4.39%.

Meanwhile, gold prices surged to an unprecedented $3,400 per troy ounce, and Bitcoin prices rose. Japan’s Nikkei index fell by 1.3%, while China’s CSI 300 managed a slight increase of 0.3%. Markets in Hong Kong and Europe remained closed for the Easter holiday.