1. RBA cuts policy rate by 25 basis points, lowest in two years. 2. Australia’s inflation at a four-year low of 2.4%; easing monetary policy anticipated. 3. GDP expanded 1.3% year-on-year in Q4, first growth since September 2023. 4. Analysts warn of global trade tensions impacting Australian economy. 5. HSBC forecasts modest negative growth due to external economic shocks.
The RBA's rate cut may support global markets; however, economic uncertainty persists, limiting optimism. Historically, rate cuts often lead to short-lived bullish sentiments, especially when coupled with external risks as seen during previous trade wars.
The article highlights economic shifts that could influence investor confidence and trading strategies in the S&P 500; policymakers and investors are likely to react to global monetary trends.
The immediate relief from the rate cut could lift sentiment temporarily, but long-term risks from global trade tensions may depress outlook.