financial markets

After a four-year odyssey through administration, private equity ownership and operational restructuring, Virgin Australia is poised to relist on the Australian Securities Exchange (ASX) at a share price of $2.90 each. Bankers—led by Goldman Sachs, UBS and Barrenjoey—report “well in excess” demand from domestic and international anchor investors ahead of the book build. The initial public offering (IPO) will see Bain Capital, Virgin’s private equity owner since 2020, sell down its stake from 70.2 percent to 40 percent, raising approximately $685 million and valuing the carrier at close to $2.3 billion. Qatar Airways, which acquired a 25 percent stake in October 2024, will hold 23.4 percent; Virgin’s management team will own 6.4 percent; and up to 30.2 percent of the company will be in the hands of new shareholders when trading commences June 26 under ticker VGN.

Here’s a clear and concise breakdown of key concepts and common questions Australians are asking about markets, shares, the falling Australian dollar, and what all this has to do with recessions and global economic turmoil — especially in the wake of President Donald Trump’s controversial “Liberation Day” tariffs.

The Australian share market has endured its most punishing day since the pandemic, with the benchmark S&P/ASX 200 shedding more than 4% on Monday, 7 April 2025. The dramatic plunge erased over $100 billion in value from Australian equities, dragging the index down to 7,343 points—its lowest level since December 2023.

Global financial markets reeled on Friday as escalating trade tensions between the United States and China sent stock indexes plummeting and investors scrambling for safe havens.

In a tumultuous day on the markets, building materials supplier James Hardie shares tumbled over 14% after the company announced a $14 billion acquisition of US outdoor products manufacturer AZEK. Despite this setback, the broader ASX 200 managed to eke out a marginal gain, closing at 7,937 points, as investors weighed mixed signals ahead of the upcoming federal budget.

policy support from the world’s second-largest economy.

President Donald Trump has announced a one-month delay on imposing a 25% tariff on imported goods from Canada and Mexico, granting temporary relief to the two largest trading partners of the United States. The exemption, which falls under the United States–Mexico–Canada Agreement (USMCA), will now expire on April 2.

The recent interest rate cut by the Reserve Bank of Australia has significant implications for both the economy and the government's political strategy. As Prime Minister Albanese's administration seeks to mitigate rising inflation and living costs, this move is seen as crucial in supporting households and stimulating growth. While many see it as a necessary relief for struggling consumers, critics warn of potential long-term challenges. This article explores the multifaceted impacts of the rate cut, reactions from political leaders, and future expectations, making sense of how this decision shapes Australia's economic landscape.