Economic fundamentals strong: minister

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Colin Brinsden, AAP Economics Correspondent
(Australian Associated Press)

A senior federal government minister believes global and Australian economic fundamentals remain strong despite the extreme volatility experienced by stock markets in recent days.

US shares roared back during Wall Street’s Tuesday session, ending around two per cent higher after the rout of the past few days which engulfed global markets and wiped $85 billion off Australian stocks.

However, markets remain jittery – led by concerns the US Federal Reserve may need to quicken the pace of interest rate rises – and as witnessed by the Dow Jones index swinging between gains and losses in a 1000-point range overnight, after posting a record points tumble on Tuesday.

“The key point here is that the fundamentals of the global economy and the Australian economy are strong,” cabinet minister Josh Frydenberg told Sky News on Wednesday.

“Here in Australia, we’re enjoying the 27th year of consecutive economic growth. It does auger well for the future.”

Shadow treasurer Chris Bowen acknowledged concerns about the volatility of markets, but urged a “sober, balanced and careful consideration” of their implications.

“Let’s take a medium-term view and not be too alarmist about very short-term movements,” he told reporters in Canberra.

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