Economists will be watching consumer spending and confidence figures in the coming week, but any domestic signals are likely to be drowned out once again by fast‑moving developments in the Middle East.
A sharply worded national address from U.S. President Donald Trump sent global markets spinning ahead of the Easter break. According to Commonwealth Bank economist Michael Tang, Trump warned the U.S. would hit Iran “extremely hard over the next 2-3 weeks” and would target the country’s electric generator plants if no agreement is reached.
Tang said the speech abruptly ended the optimism that had been building around hopes for a quick, peaceful resolution to the conflict.
“The risk is a longer closure of the Strait of Hormuz, as well as destruction of other key energy and oil facilities across the Middle East,” he said.
The shockwaves were immediate. In Australia, the S&P/ASX200 tumbled 92.3 points, or 1.06%, to 8,579.5 on Thursday, while global oil prices surged more than 6%, climbing above US$107 a barrel.
On Wall Street, the reaction was mixed:
Dow Jones slipped 0.13% to 46,504.67
S&P 500 edged up 0.11% to 6,582.69
Nasdaq gained 0.18% to 21,879.18
With geopolitical risks rising and energy markets on edge, analysts say Australian economic data may take a back seat as investors focus on whether the conflict widens and how long the world’s most critical oil corridor remains at risk.
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