Murray Olds: Australian correspondent on the Australian stock market bouncing back after earlier slump

Over in Australia, stocks have surged after an earlier crash brought about by Donald Trump's new tariffs. 

The ASX climbed more than 6 percent in early trade, while on Wall Street the S&P 500 climbed 9.5 percent.

Australian correspondent Murray Olds says this has prompted calls from economic experts to cut the OCR ahead of the Reserve Bank's next meeting.

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Episode Transcript

Speaker 1 (00:00):
How make Murray olds in Australia Murray good afternoon, Yeah,
good ay, buddy, here you going good. Thank you. Guys
have had a good rally today.

Speaker 2 (00:07):
Yeah. Literally minutes after they opened ten am Australian time,
Eastern time, midday New Zealand time, and literally in minutes
the Australian sock market up six percent in that very
very early trade. I mean they must have been there
this morning having their wheatbeaks, the traders looking what's happening
in Washington and thought, bloody hell, I bet he go

(00:27):
into work this morning on time because it was all
it was all hands on deck. Up six percent and
early trade, the ASX, the Australian dollar up as well.
Last time I looked, Australian iron ore was up two
and a half two point two percent. I beg your pardon,
which is great if China is still going to be
able to afford to buy Australia's iron ore, because of course,

(00:49):
the baseline tariff that Trump is now imposing worldwide ten
percent of Australia was already at that mark. So ten
percent for the rest of the world for ninety days,
but heavens above one hundred and twenty five percent on China.
So what does that mean for Australia, Because that's the
big question over here. Australia I big your pardner, China
by far Australia's biggest trading partner. Just enormous volumes in

(01:15):
Australia's favor here that Australia sells up into China, a
massive market. So economists now over here calling on the
Reserve Bank of Australia to cut the cash rate. Now
they're not sheddled to meet again until next month, so
they want an emergency meeting of the RBA. They want
a half percent cup now, half percent next month, or

(01:37):
if they're not going to do that, meet next month
and give us half of one percent. So it really
is that they are now calling for a mega rate cut.
They're saying Ryan, not zero point twenty five, but they
won half a percent cut next time the bank meets
unless they meet tomorrow, and that's not going to happen.
So it really is. It's kind of like you wake

(01:58):
up this morning, what the hell is going on? Because
the world had changed overnight, and look, there are people
growing wine, people growing beef, people growing wheat, people digging
up Cole and I and or they just don't know
what's going to happen tomorrow.

Speaker 1 (02:12):
No, none of us do, do we The most sleep
we get is when he's sleeping. I have found now Australia,
this is interesting. So Beijing has come to canber and said, look,
let's jointly oppose Trump, and Elbow is actually resisting this.

Speaker 2 (02:30):
Look an intriguing cheeky you might say. The Chinese ambassador
to Australia very well spoken, very well regardedly. He wrote
an op ed piece for the nine newspapers that is
The fin Review, the City Morning Herald and the Age
newspaper in Melbourne. And as you say, he said, there
was an invitation from Beijing to Australia to quote, join

(02:54):
hands with Beijing to resist Donald Trump. We should be
in solidarity with Beijing. And as you say, the Prime
Minister here, Anthony Alberanzi, he brushed that off. We'll speak
for ourselves, he said. The trade relationship, he was very
quick to point out though, is vitally important for Australia.
It does represent and I hadn't heard this step before

(03:14):
before Albanizi mentioned this today, Ryan, the trade with China,
this is very important. It represents one and four jobs
in Australia. That's a huge number. That's a big, big number.
One and four jobs are directly linked to Australia's trade
with China, by far our biggest trading partner. And so
what happens to China, not just the US, what happens

(03:37):
to China materially affects Australia.

Speaker 1 (03:39):
Absolutely, we will the same tightrope you guys do trying
to balance those two interests. Murray, thank you for that.
Great to have you on as the words. Murray El's
our Australia correspondent. For more from Hither Duplessy Allen Drive,
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