ASX surges on Coalition victory

Advertisement

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%:

Advertisement

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.

About the author
Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness. Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.