FEAR & GREED | Business News Q+A: Tariffs & slow economy, but ASX soars. Why?
Aug 7, 2025
Tariffs from the US are raising eyebrows, yet the ASX is on an upward trajectory. The hosts dissect how anticipated interest rate cuts are fueling investor optimism. They delve into the limited impact of tariffs on Australian companies and highlight strong performances in the telecommunications and healthcare sectors. The conversation also touches on how global events, especially changes in China, shape the Aussie economy, emphasizing the need for sound financial advice in these unpredictable times.
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Market Trades on Future Profits
- The stock market prices stocks based on expected future profits rather than current economic conditions.
- Lower interest rates boost investor confidence by suggesting consumers will spend more, lifting specific sectors like retail electronics.
Diverse Market Drivers Amid Tariffs
- Tariffs have limited direct impact on most Australian companies compared to other factors.
- Some sectors like mining and energy are thriving, diversifying market strength despite bank shares softening.
China's Economy Directly Affects Australia
- China's economic activities, like major infrastructure projects, affect Australian commodity prices directly.
- U.S. tariffs influence Australia mainly through slowing global growth rather than direct trade impact.