Aussie Shares Up, Star Copping Flak: RBA’s Inflation Fight Hits Your Pocket?

Share Market Reacts to Global Trade News

The Australian sharemarket looks set for another day of gains, reacting to a more optimistic outlook on global trade after a period of uncertainty, particularly surrounding US trade policy. The S&P/ASX 200 was up 0.4 per cent, or 30.1 points, reaching 7778.7 points around 2.10pm, building on Monday’s gains of over 1 per cent. The All Ordinaries also saw a rise of 0.3 per cent. Most sectors, specifically six out of eleven, showed positive movement, with healthcare stocks leading the way. This positive sentiment follows a rally on Wall Street, where the S&P 500 closed up 2.2 per cent, driven in part by investor reaction to potential tariff pauses on some electronic imports, particularly impacting technology stocks.

While this news is generally positive for investors, it’s important to remember that the share market’s performance has a limited direct impact on everyday Aussies looking to buy, sell, or invest in property. Indirectly, though, strong market performance can boost consumer confidence, which *can* lead to increased activity in the property market. However, other factors, like interest rates (controlled by the RBA), are far more influential.

Trump’s Trade Policy and Its Ripple Effect

Former U.S. President Trump indicated he was considering temporary exemptions on tariffs for imported vehicles, following announcements about temporary exclusions for electronics like iPhones. This resulted in a lift for Japanese shares, particularly in car manufacturing, with companies such as Toyota seeing gains. BlackRock noted that these pauses “suggest the US administration is taking some account of financial risks and costs … it shows there are factors that could put a check on the administration’s maximal tariff stance.”

The impact of these trade policies on the Australian economy, and therefore the property market, is complex. While direct trade with the US is important, global economic stability is paramount. Periods of trade uncertainty can affect investment decisions and overall economic confidence. Always consult a qualified financial planner before making investment decisions based on global markets, as they can advise you on the impacts on your property ownership, rentals or investments.

Defensive Stocks and Bank Gains in Australia

Australian investors showed preference for defensive stocks, reflecting a cautious approach. CSL rose 2 per cent, and Resmed 1 per cent, after Morgan Stanley highlighted these stocks as potentially more resilient to US tariffs. However, the big banks propelled the gains, with Commonwealth Bank up 1.2 per cent, Macquarie 1 per cent and Westpac 1.1 per cent.

The Role of Banks in the Property Market

The performance of big banks often mirrors the health of the Australian property market, given their substantial lending activity. Increased bank profitability can signal confidence in the economy and the housing sector. However, it’s imperative for consumers to remember that banks prioritise profit and are required to conduct responsible lending obligations, protecting both the bank and the consumer. It is important to assess your needs and abilities to service a loan by undertaking your own independent research and seeking financial advice. It’s crucial for prospective borrowers to be diligent and to thoroughly research their options before committing to a home loan.

Technology Stocks and Mining Losses

Technology stocks experienced declines, with WiseTech falling 2.5 per cent and TechnologyOne 1.5 per cent. In the mining sector, Bellevue Gold suffered the biggest loss, slumping 22.1 per cent after securing buyers for a $156.5 million new share placement.

Corporate News and Market Movements

Several companies made significant announcements affecting their stock prices.

• Collins Foods dropped 6.2 per cent after stating it would exit Taco Bell in Australia due to various operational changes.
• Perpetual declined 2.2 per cent following a significant increase in net outflows during the third quarter, with investors withdrawing funds from global and US funds.
• Accent Group rose 4.5 per cent following an announcement of a partnership with Frasers Group to launch UK sports retailer Sports Direct in Australia and New Zealand.

Consumer Protection in Property Investing

While the share market and individual company news can influence the overall economic climate, it’s essential for property consumers to remain informed about their rights and responsibilities. This includes understanding the Australian Consumer Law (ACL) and state-based Fair Trading Acts. These regulations provide protections against unfair practices, misleading advertising, and defective products or services related to property transactions.

Key Consumer Protections for Property Owners and Renters:

• Misleading or Deceptive Conduct: Estate agents and developers must not make false or misleading claims about properties.
• Implied Warranties: For new constructions, there are implied warranties regarding the quality of workmanship and materials.
• Tenancy Laws: Landlords must adhere to tenancy laws, ensuring fair and habitable living conditions.
• Disclosure Requirements: Sellers must legally disclose all material facts about a property that could affect its value or desirability.

Staying Safe from Property Scams

Property scams are unfortunately prevalent. Always be wary of unsolicited offers, deals that seem too good to be true, and pressure tactics. Verify information independently, and use reputable professionals (real estate agents, conveyancers, property managers). The ACCC’s Scamwatch website (https://www.scamwatch.gov.au/) provides valuable information on common scams and how to protect yourself.

Dispute Resolution

If you encounter issues during a property transaction, several dispute resolution options are available. Mediation is a cost-effective and often successful method for resolving disagreements. Fair Trading bodies in each state and territory offer mediation services and advice.

If mediation isn’t successful, you may need to seek legal advice and consider taking your case to a relevant tribunal or court. Tribunals like the NSW Civil and Administrative Tribunal (NCAT) or the Victorian Civil and Administrative Tribunal (VCAT) can resolve many property-related disputes without the expense of a full court hearing. Check your local state websites for appropriate channels of contact.

Knowing your rights and responsibilities is your first step towards ensuring a smooth and secure property experience. Before purchasing or selling an investment property, always remember to seek professional legal and financial advice.

Source: *Australian Financial Review* and Industry research and analysis.

This article is based on a report from www.afr.com titled “Sharemarket lifts; Star Entertainment losses notch $302m; RBA says fixing inflation ‘highest priority’”. You can find the original article here: https://www.afr.com/markets/equity-markets/asx-to-lift-trump-flags-pause-on-auto-tariffs-20250415-p5lrqy