World share markets including Australia are primarily driven by what happens on Wall Street because America’s market accounts for over half the global market. It’s the elephant in the room. Turning points in the Australian All Ords share price index closely follow those of America’s S&P 500 index.
The media focuses on Trump’s trade war with China, Johnson’s Brexit victory and Trump’s latest showdown with Iran. These cause ripples on Wall Street but not waves. The real force since the end of the global financial crisis in 2008 has been LIQUIDITY. Whenever the Federal Reserve has added to bank cash reserves by buying government bonds or other securities, the US stock market has soared. And whenever it has stopped doing so the market has corrected.