Aust economy ‘fragile’: IG Markets

IG Markets global boss Tim Howkins has warned on the risk of housing market pain amid a ‘fragile’ local economy, The Australian Business Review reports.

“It feels as if the economy here is quite fragile,” he told The Australian.

“You have clearly got something of a property bubble, particularly in Sydney and Melbourne. That is just making people a little bit more cautious at the moment.”

Mr Howkins added that the risk of a housing market correction was worthy of concern.

“The nature of bubbles is that they have to burst and, if it does burst, things can be quite messy.”