ASX surges on Coalition victory

There’s nothing like a pro-business government to send stocks surging:

The ASX 200 index has surged 1.3% on morning trade, driven by big rises in financials, which together have risen around 5%:

I put the rally down to the retention of negative gearing and the existing capital gains tax discount, which is bullish for both lending and house prices, alongside a softer stance on lending standards.

Leith van Onselen


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      I think market might be a little long bonds so we may see a sell off, yields up not too far then buy again, think market is a little short AUD so maybe a bit of a squeeze higher, towards 70c but will depend on Euro elections this week, I’d be selling into this euphoria in the stock market at 6500 here around for high 5,000s later this year, dragged down by US stock market to test 2018 lows in Dow at 21000 over next 6 months
      Still think we will see Australian 10 year below 1%, maybe euphoria might delay rate cuts, rate cuts will just come faster and harder into end of year, think cash rate will be 0.50%
      or lower this time next year with 0% end of 20 thereabouts

    • Crack-up boom incoming. Strap in.

      Yep. Time to ramp it up. Fake Christian Scomo will take us all to house price Rapture.

  1. Any bets on how long it’ll take to drop a hundred points? Tomorrow? End of this week?

    • DominicMEMBER

      US stocks are shaping up for a quick n dirty correction this week or next. Main event later this year, as things stand.

  2. Plan to import huge numbers of aged parents from India Asia England etc. was the last straw for me. Our wonderful health system could not deal with it.

  3. DingwallMEMBER

    Bloody hell ANZ up 7% now. Everyone thinking it’s party time…… and those parasitic health funds ffs.

    • All bank up 6-8%. Getting over excited about nothing. My guess it was just an easy excuse for everyone to get on the same side and pump it. Huge gap up. If us markets are flat then we should see the gap close very quickly

      • proofreadersMEMBER

        Nah – we have the miracle man blessing the market. The Donald is not even a match for our miracle man?

  4. I notice Core Logic registering a 0.48% daily increase for Sydney. These numbers are supposed to be based on settlement data with around two month delay. Coincidence or post-election numberwang?