smh.com.au
Australian Share Market Set for Lower Open After Wall Street Decline
The Australian sharemarket is predicted to open lower on Thursday, following a Wall Street decline that wiped out more than \$1 trillion from large-cap market values; ASX futures fell 0.9 percent on December 31, while the Australian dollar traded at US 61.91 cents, amid concerns about President-elect Trump's protectionist policies and the Chinese economy.
- What are the major factors contributing to the subdued outlook for the Australian share market in 2025?
- Wall Street's decline, attributed to concerns about President-elect Trump's protectionist policies and fewer potential interest rate cuts, set a subdued tone for the start of 2025. Despite the recent losses, the S&P 500 still showed a 50 percent increase since the start of 2023. The Australian market finished the year with a 7.5 percent return, slightly lower than the previous year's 7.8 percent gain.
- What is the immediate impact of the Wall Street decline on the Australian share market and the Australian dollar?
- The Australian share market is projected to open lower on Thursday, following a decline on Wall Street. ASX futures dropped 0.9 percent to 8148 on December 31, while the Australian dollar traded at US 61.91 cents. This downturn follows a year-end pullback on Wall Street, which saw the S&P 500 and Nasdaq 100 fall for four consecutive sessions, wiping out more than \$1 trillion from large-cap market values.
- How might President-elect Trump's policies and economic conditions in China specifically affect the performance of the Australian share market and the Australian dollar in 2025?
- The upcoming Trump administration and uncertainty in the Chinese economy pose significant concerns for the Australian share market in 2025. Analysts consider Trump's inauguration on January 20 and the Australian Reserve Bank's interest rate decision on February 6 as crucial events impacting market performance. Trump's policies, particularly new trade tariffs, could significantly influence global markets and the Australian dollar.
Cognitive Concepts
Framing Bias
The article frames the upcoming year as heavily dependent on Trump's actions, giving disproportionate weight to his policies and potential effects on the Australian market. While acknowledging some potential downsides, the overall tone suggests a significant emphasis on the potential impact of Trump's economic agenda, overshadowing other potential factors influencing the market. This is evident in the repeated mentions of Trump and his policies throughout the article.
Language Bias
The language used is largely neutral, avoiding overtly charged terms. However, phrases like "downer" to describe the end of 2024 and "in the dust" to compare US vs. Australian market performance reveal a subtle negativity towards the Australian market. Additionally, the repeated use of phrases emphasizing potential gains or losses creates a sense of heightened anticipation and potential volatility.
Bias by Omission
The analysis lacks diverse perspectives beyond Australian and US market analysts. The impact on other global markets and the opinions of international economists are absent, limiting a comprehensive understanding of potential global effects of US policy changes. Omission of counterarguments to the overwhelmingly positive outlook on tech stocks related to Trump's policies also presents a biased view.
False Dichotomy
The article presents a false dichotomy by focusing heavily on the positive or negative impacts of Trump's policies on the Australian share market, without acknowledging the potential for nuanced or mixed results. The analysis leans too heavily on either significant gains or significant losses, overlooking the possibility of moderate change or sector-specific variations.
Sustainable Development Goals
The article discusses the Australian sharemarket's performance, influenced by global economic factors such as US policies and interest rates. Positive growth in the market, though tempered at year-end, indicates progress towards economic growth. The discussion of job sectors like tech and finance also relates to decent work.