To The Moon

The Australian stock market recorded its most significant weekly decline in twelve months, driven by Middle East conflict unsettling global energy markets and amplifying inflation concerns. The S&P/ASX 200 Index retreated by 89.30 points, equivalent to a 1% decrease, settling at 8851. Kyle Rodda, a senior market analyst at Capital.com, noted that markets have begun to factor in a potential oil price shock. This development has reduced expectations for additional interest rate cuts in the United States and inverted the swaps curve in the Eurozone. Concurrently, bond markets adjusted to price in more than two potential interest rate hikes from the Reserve Bank of Australia before the year concludes, following a surge in yields. "The likelihood of a persistent and worsening supply shock t

The Australian sharemarket fell on Friday as the escalating conflict in the Middle East raised the prospect of sustained disruptions to energy markets and oil prices, with implications for inflation and global commerce. The S&P/ASX 200 Index was down 111.10 points, or by 1.2% to 8829.50, taking total losses for the week to around 4%. A weekly drop by this amount would be the worst week for the benchmark since a 4.2% drop after the Reserve Bank of Australia delivered a shock rate rise in May 2022. Bond markets now expect more than two RBA rate rises by the year’s end after a jump in bond yields. Capital.com senior market analyst Kyle Rodda said markets have started to price in a degree of price shock from oil, which has watered hopes for further US rate cuts and flipped the swaps curve

The Australian sharemarket rebounded from a $63 billion wipeout as bargain hunters piled back into equities after strong US economic data kept the possibility of rate cuts on the cards. The S&P/ASX 200 Index was up 39.10 points, or by 0.4%, at 8940.50, having traded as high as 8964.10 points in the morning session, buoyed by a strong rally on Wall Street overnight. Stocks were sold off around the world on Wednesday, sending the ASX 200 diving 1.9%, amid fears of a protracted war in Iran that will keep oil prices elevated and reignite inflation. Brent rose a further 3.1% to $US83.90 per barrel as the ASX shut. But strong US economic data – including private payrolls and the ISM Services Index – eased some of those fears and kept hopes of rate cuts from the Federal Reserve alive. “The mo

The Australian sharemarket rebounded from a $63 billion wipeout at the open on Thursday, tracking gains on Wall Street following data pointed to a strong US economy, keeping rate cuts on the cards. The S&P/ASX 200 Index was up by 0.7%, or 62 points to 8963.20 at 10.10am AEDT, with nine of the 11 sectors strong. It follows a 1.9% plunge on Wednesday – the second-biggest fall in a year. Interest rate sensitive tech stocks were the biggest risers, buoyed by strong overnight gains on the Nasdaq as robust economic data bolstered hopes for more US rate cuts. WiseTech Global rose 4.2% and Xero 5.3%. Investors also returned to the major banks with ANZ up 1.1%, Commonwealth Bank 1.3%, Westpac by 1.4% and National Australia Bank 2.2%. Energy was the weakest sector as oil prices remained relative

The Australian sharemarket erased more than $60 billion from its market capitalisation on Wednesday as fears of a widening Middle East war roiled equity markets around the world as a soaring oil price raised inflation fears. The S&P/ASX 200 plunged 176.10 points, or by 1.9%, to 8901.20, erasing $63 billion from the market capitalisation as traders pivoted away from risk assets in the benchmark’s second-biggest drop since April. Selling accelerated across Asia, with South Korea’s benchmark falling as much as 10% as investors rushed to pull money from one of the world’s hottest sharemarkets. Higher oil prices and the impact on inflation is a central fear for investors, with bond traders dialling back US rate cut bets. Further spike in the oil price may grind down the global economy and s

The Australian sharemarket has tumbled more than 1% as fears of a widening Middle East war roiled global markets and sent the oil price soaring. The S&P/ASX 200 fell 121.80 points, or 1.3% to 8955.50 at 10.20am AEDT, with all 11 sectors weaker as investors pivot away from risk assets. It comes after Wall Street tumbled by as much as 2% overnight as fears that a prolonged conflict in the Middle East could drive up inflation, resulting in traders paring back expectations of further rate relief in the near term in the US. “Markets are recognising the Iran conflict could be drawn out and more disruptive to the world economy than initially thought,” Moomoo Australia deadling manager Paco Chew said. The energy sector was mixed as Woodside rose 0.2% and Ampol 1.4%, as oil rose 5.4% to $US81.9

The Australian sharemarket fell sharply on Tuesday as increasing conflict in the Middle East intensified risk-off sentiment among investors as rising oil prices reignited inflation fears. The S&P/ASX 200 dropped 1.3%, or 123.60 points, to 9077.30, retreating from Monday’s record close of 9202.90. Ten of the 11 sectors traded lower. “Investors decided to batten down the hatches and lock in profits after a fantastic February reporting season and a good run higher,” IG market analyst Tony Sycamore said. Oil remained the central focus, rising 2.6% to $US79.76 a barrel as Iran threatened to close the Strait of Hormuz, a key global oil transit route. The surge in energy prices heightened concerns about renewed inflationary pressures and reduced expectations of near-term interest rate cuts in

The Australian sharemarket slipped from Monday’s record high as investors weighed the potential impact of rising oil prices amid escalating conflict in the Middle East. The S&P/ASX 200 Index fell 0.3%, or 24.50 points to 9176.40 at 10.15 am AEDT, with eight of the 11 sector weaker. Energy stocks continued to limit the damage on the ASX as Brent climbed 6.7% to $US77.74 per barrel at the open, while natural gas gained 3.5% to $US2.96 as Qatar shut down liquefied natural gas production at the world’s largest export facility after it was targeted in an Iranian drone attack. “The markets are treating the war between the US, Israel and Iran as a significant but relatively manageable and brief supply shock,” Capital.com senior market analyst Kyle Rodda said. Woodside rose 1%, Santos 0.7%, Be

The Australian sharemarket closed at a record high as investors rushed into gold miners and oil stocks after US-Israeli strikes that killed Iran’s supreme leader, Ali Khamenei. The S&P/ASX 200 Index added 2.3 points to 9200.90 – the fourth consecutive record close – as five of the 11 sectors closed up as investors piled into haven assets including the US dollar and gold. US futures were pointing to heavy selling on Wall Street later today, with major indices down around 1%. Brent crude was last up 5.8% to $US77.09 a barrel after rising as much as 13% at the open, while gold gained 1.4% to $US5350 an ounce. That came as Iran retaliated with strikes on nearby Gulf countries, including Iraq, Kuwait, Bahrain, Qatar, the United Arab Emirates and Oman. The conflict disrupted key aviation hub

The Australian sharemarket fell from record highs after a US-led strike killed Iran’s supreme leader Ali Khamenei and much of the regime’s senior leadership. Brent crude surged more than 10%. The S&P/ASX 200 Index fell 37.30 points, or 0.4%, to 9161.30, with eight of the 11 sectors in negative territory as investors piled into safe-haven assets including the US dollar and gold. Brent crude spiked 13% to $US82 a barrel at the open, while gold climbed 1.6% after Iran retaliated to the US-Israel attack with strikes on nearby Gulf countries, including Iraq, Kuwait, Bahrain, Qatar, the United Arab Emirates and Oman. The conflict disrupted key aviation hubs and oil shipments through the Strait of Hormuz. Capital.com senior market analyst Kyle Rodda said markets had not priced in a comprehens