There is no stopping the Australian Securities Exchange (ASX) which continues to set new highs. The S&P/ASX 200 futures index indicating a 0.4% rise, up 33 points and pointing to an 8,858 start for the index. The market was on a tear lately. The ASX 200 shot almost 2pc higher in its final session of trading, boosting upbeat momentum.
Global markets showed favorable trends. The tech-heavy Nasdaq Composite Index surged by 0.9%, finishing at 23,235 points. At the same time, the S&P 500 increased by half a percent, up to 6,964 points. The Dow Jones Industrial Average clawed its way to a very slight gain of 0.01%, closing at 50,119. While these changes within the United States are certainly promising, they reflect a growing confidence in a global economic recovery.
Currency and Commodity Performance
On the foreign exchange market, the Australian dollar rose by 1.1% to 70.9 US cents. This sharp increase likely corresponds to an improvement in investor sentiment and an overall better outlook for the Australian economy.
Commodity prices rounded out the impressive growth picture, helping propel optimism through the overall economy. Spot gold jumped 2.3%, hitting an all-time price of $US5,077 per ounce. At the same time, Brent crude oil prices rose by 1.2% to $US68.91 per barrel. Further, the price of iron ore rose just 0.5%, pushing it over 100 US dollars at US$100.110 per tonne. Bitcoin followed the broader uptrend, increasing 0.5% to $US70,638.
Wage Trends Among Young Australians
Against this alarming economic backdrop, a piece of research drew attention to the dropping wage fortunes of young Australians. As a result, it became clear that 20-year-olds today only make about 90% of an ‘adult’ wage, and 19-year-olds only about 80%. This wage structure indicates that for every year below the age of 21, a discount is applied to their earnings. These statistics shed light on the economic precarity impacting the younger members of our workforce.
Looking Ahead
Investors might be most anxious to see the ASX come to life. At the same time, global markets have reacted positively to these recent developments, sending signals of future profits and creating optimism that this trend will continue. Analysts warn that much will be required to keep such momentum going, as global economic forces and other domestic factors will play a catalytic role.
