Australia stocks are projected to rise 5% in 2025 due to economic growth and lower interest rates

From Investing.com: 2024-12-05 20:33:51

Australian stocks are projected to rise in 2025, supported by lower interest rates and economic growth, UBS analysts predict. The ASX 200 is expected to hit a record high of 8,850 points, up 5% from current levels. The economy and stocks are seen as a safe haven amid global uncertainties, with tech, insurance, and industrials favored by UBS.

Australia’s limited trade exposure to the U.S. insulates it from potential tariff disputes with President-elect Donald Trump. Close security ties between Washington and Canberra have kept Australia relatively unscathed by tariffs during Trump’s first term. UBS foresees mid-single-digit earnings growth in 2025 as the Reserve Bank starts cutting interest rates from May.

UBS recommends investing in technology, insurance, and industrial stocks in Australia due to factors like demand for artificial intelligence, strong pricing power, and exposure to the U.S. economy. Mid-cap stocks, especially in tech, classifieds, and healthcare sectors, are expected to outperform in 2025. The ASX 200 hit record highs in November on expectations of global economic growth and stimulus in China.



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