However, as seen during the recent ratchetting up in the US–China dispute, asset prices could fall quickly if market participants become more concerned about its potential to weigh on growth of the global economy and corporate earnings. Graph 6  The combination of all of these changes has underpinned a general easing in global financial conditions through the course of this year.
Changes in Australian Financial Conditions The transmission to Australian financial conditions of easier monetary policy both here and globally can be traced through the effects on funding costs, and on the Australian dollar.