- ASX loses $97 billion amid global recession fears linked to Trump’s trade tariffs.
- Treasurer Chalmers hints at interest rate cuts to stabilise the economy.
- Labor opens strong lead over Coalition; Dutton forced into policy backflip.
Financial markets were rocked on Monday with the ASX plummeting by 4.2%, wiping $97 billion off its value. Investor confidence took a hit following fears that Donald Trump’s revived trade war policies could trigger a global recession.
Meanwhile, the political winds appear to be shifting in Labor’s favour. Fresh polling indicates the party is edging closer to securing majority government.
Labor Rises, Markets Fall: Day 7 Delivers High Stakes in Federal Election 2025
Monday’s market turmoil underscored the fragility of the global economy. Fears around Trump’s protectionist policies sent shockwaves across international trading floors. The Australian Treasury projected modest but permanent economic setbacks. They highlighted the country’s vulnerability in the face of foreign tariff decisions.
Treasurer Jim Chalmers moved quickly to contain public anxiety. He suggested that Australia’s economic fundamentals remain strong and that interest rate relief is likely. This political messaging is aimed not only at investors but also at voters concerned about cost-of-living pressures.
In campaign developments, Labor continues to build momentum as the Coalition stumbles. Anthony Albanese’s strong performance combined with Peter Dutton’s awkward reversal on the public sector policy. This is giving Labor a narrative of competence versus chaos. Voters appear to be responding, with polling now indicating that a majority government is within Labor’s grasp.
Personal rivalries also flared, especially in high-profile electorates like Kooyong. Teal independent Monique Ryan attacked Liberal rival Amelia Hamer over her property holdings. The tension reflects a broader theme of authenticity and class politics now emerging in key seat battles.
As economic jitters and political missteps define the early days of the campaign, Labor is capitalising on the moment. Meanwhile, the Coalition attempts to regain control of the narrative.
“We’ve made a mistake in relation to the policy. We apologise for that.” — Peter Dutton, on the Coalition’s scrapped public service plan.
