The ASX200 ended a tough week down -2.2%, extending March’s retreat to -8.4% with more losses likely on Monday. Materials (-7.1%) and Tech stocks (-4.2%) continued to lead the decline, as fears around global growth and inflation escalated as the war dragged on with no end in sight, and oil prices looked increasingly comfortable above $US110. On Friday night, selling intensified into the U.S. afternoon session after Reuters reported Iraq had declared force majeure on oilfields operated by foreign companies, while President Trump said he was not seeking a ceasefire with Iran. Now entering its fourth week, roughly in line with Trump’s initial timeframe, the conflict is nonetheless unsettling Washington, as Iran’s ability to disrupt oil markets with relative ease continues to drive global angst.
The ASX200 ended a choppy week down 2.6%, with the Middle East conflict weighing on equities. Energy was the only sector to finish higher, while rate-sensitive tech (-7%) and real estate (-5%) dragged on the index as surging oil prices reignited inflation fears. The influential materials sector also endured a tough week, retreating -4.7% as weakness in copper and gold stocks offset a bounce in iron ore names. However, the market's largest stock, BHP, weighed heavily on the index, falling 5.7% over the week as a Chinese ban on its iron ore caused increasing angst. The moves on Friday night in the US point to more of the same next week, with gold and copper stocks coming under renewed pressure.
Last week was again volatile at the stock level as the local reporting season drew to a close, but the index forged ahead, absorbing what was thrown at it and closing up 1.3% at a new all-time high. The materials sector continued to do the heavy lifting, closing up +7.4%, ably supported by the consumer staples, which ended up 5%, while the retailers were a notable weak link with the consumer discretionary sector ending the week down 3.3%. With BHP surging more than $5, also closing at an all-time high on Friday, the market enjoyed a huge uplift from the “Big Australian” while beats trumped misses, which bodes well through 2026, although there were some standouts in both camps.
It was another bruising but ultimately constructive week for Australian equities, with the ASX200 finishing higher and holding close to all-time highs despite wild stock-level volatility as reporting season met the ongoing AI debate head-on.
The index was again pulled in different directions under the surface, with sharp rotations between sectors and increasingly binary outcomes on earnings day. Strong results were rewarded aggressively, while any hint of disappointment was met with little mercy.
It didn’t feel like it on Friday afternoon as the ASX200 plunged more than 125 points, but the index still managed to finish last week up +2.4% after one of the most violent weeks of reporting season we can remember - 10% swings in either direction were almost pedestrian! The heavyweight banks and resources offset broad market weakness, led by any stocks feared to be at risk of AI disruption, with selling gathering momentum from already panic-like levels. The dominant themes were very binary in nature:
The ASX 200 ended a volatile week down -1.8%, but it felt far worse on Friday when the index tumbled more than 2% - at least it should recover half of those losses on Monday morning. We received a rate hike last week, but it hardly registered with investors, focusing on three major themes:
• The disruption by AI across the software sector, with negative sentiment spreading to tech in general.
• Profit-taking in the commodity markets with silver plunging over 16% in just a matter of hours.
• Risk off in general with Bitcoin plunging to its lowest level since late 2024.
The ASX 200 ended the short week up just +0.2%, but the volatility over the 4-days was more than many months! The energy and materials sectors were again the top performers, but Friday's savage 100-point reversal dented many of the previous high flyers, while the rate-sensitive consumer discretionary and tech sectors fought over the wooden spoon, again.
This week is likely to be a very different market following the confirmed nomination of Kevin Warsh to be the next Federal Reserve Chair, taking over from Jerome Powell. Warsh is seen as more inclined than other finalists to guard against rising price pressures, a stance that would translate into monetary policy that is supportive of the US dollar. That saw the $US push up nearly 1% sending Gold & other commodities sharply lower. Gold experienced a top-to-bottom $US900/oz plunge overnight which will have the miners on the back foot on Monday,
The ASX 200 finished a choppy week down just -0.5%, recovering from early weakness sparked by President Trump’s threats toward European allies tied to his ambitions around Greenland. While the rhetoric was quickly walked back at Davos, the episode was a reminder of how abruptly geopolitical risk can re-emerge. Yet markets largely shrugged it off, highlighting their resilience to headline-driven volatility. The “buy-the-dip” trade — closely tied to the so-called “TACO trade” (Trump Always Chickens Out) — continues to deliver, at least for now. The market may feel unsettled to many, but it's still up +1.7% year-to-date, dragged higher by a robust materials sector, which has already surged +9.3% in 2026.
The ASX 200 finished a choppy week down just -0.5%, recovering from early weakness sparked by President Trump’s threats toward European allies tied to his ambitions around Greenland. While the rhetoric was quickly walked back at Davos, the episode was a reminder of how abruptly geopolitical risk can re-emerge. Yet markets largely shrugged it off, highlighting their resilience to headline-driven volatility. The “buy-the-dip” trade — closely tied to the so-called “TACO trade” (Trump Always Chickens Out) — continues to deliver, at least for now. The market may feel unsettled to many, but it's still up +1.7% year-to-date, dragged higher by a robust materials sector, which has already surged +9.3% in 2026.
The ASX200 ended a choppy week down 2.6%, with the Middle East conflict weighing on equities. Energy was the only sector to finish higher, while rate-sensitive tech (-7%) and real estate (-5%) dragged on the index as surging oil prices reignited inflation fears. The influential materials sector also endured a tough week, retreating -4.7% as weakness in copper and gold stocks offset a bounce in iron ore names. However, the market's largest stock, BHP, weighed heavily on the index, falling 5.7% over the week as a Chinese ban on its iron ore caused increasing angst. The moves on Friday night in the US point to more of the same next week, with gold and copper stocks coming under renewed pressure.
Last week was again volatile at the stock level as the local reporting season drew to a close, but the index forged ahead, absorbing what was thrown at it and closing up 1.3% at a new all-time high. The materials sector continued to do the heavy lifting, closing up +7.4%, ably supported by the consumer staples, which ended up 5%, while the retailers were a notable weak link with the consumer discretionary sector ending the week down 3.3%. With BHP surging more than $5, also closing at an all-time high on Friday, the market enjoyed a huge uplift from the “Big Australian” while beats trumped misses, which bodes well through 2026, although there were some standouts in both camps.
It was another bruising but ultimately constructive week for Australian equities, with the ASX200 finishing higher and holding close to all-time highs despite wild stock-level volatility as reporting season met the ongoing AI debate head-on.
The index was again pulled in different directions under the surface, with sharp rotations between sectors and increasingly binary outcomes on earnings day. Strong results were rewarded aggressively, while any hint of disappointment was met with little mercy.
It didn’t feel like it on Friday afternoon as the ASX200 plunged more than 125 points, but the index still managed to finish last week up +2.4% after one of the most violent weeks of reporting season we can remember - 10% swings in either direction were almost pedestrian! The heavyweight banks and resources offset broad market weakness, led by any stocks feared to be at risk of AI disruption, with selling gathering momentum from already panic-like levels. The dominant themes were very binary in nature:
The ASX 200 ended a volatile week down -1.8%, but it felt far worse on Friday when the index tumbled more than 2% - at least it should recover half of those losses on Monday morning. We received a rate hike last week, but it hardly registered with investors, focusing on three major themes:
• The disruption by AI across the software sector, with negative sentiment spreading to tech in general.
• Profit-taking in the commodity markets with silver plunging over 16% in just a matter of hours.
• Risk off in general with Bitcoin plunging to its lowest level since late 2024.
The ASX 200 ended the short week up just +0.2%, but the volatility over the 4-days was more than many months! The energy and materials sectors were again the top performers, but Friday's savage 100-point reversal dented many of the previous high flyers, while the rate-sensitive consumer discretionary and tech sectors fought over the wooden spoon, again.
This week is likely to be a very different market following the confirmed nomination of Kevin Warsh to be the next Federal Reserve Chair, taking over from Jerome Powell. Warsh is seen as more inclined than other finalists to guard against rising price pressures, a stance that would translate into monetary policy that is supportive of the US dollar. That saw the $US push up nearly 1% sending Gold & other commodities sharply lower. Gold experienced a top-to-bottom $US900/oz plunge overnight which will have the miners on the back foot on Monday,
The ASX 200 finished a choppy week down just -0.5%, recovering from early weakness sparked by President Trump’s threats toward European allies tied to his ambitions around Greenland. While the rhetoric was quickly walked back at Davos, the episode was a reminder of how abruptly geopolitical risk can re-emerge. Yet markets largely shrugged it off, highlighting their resilience to headline-driven volatility. The “buy-the-dip” trade — closely tied to the so-called “TACO trade” (Trump Always Chickens Out) — continues to deliver, at least for now. The market may feel unsettled to many, but it's still up +1.7% year-to-date, dragged higher by a robust materials sector, which has already surged +9.3% in 2026.
The ASX 200 finished a choppy week down just -0.5%, recovering from early weakness sparked by President Trump’s threats toward European allies tied to his ambitions around Greenland. While the rhetoric was quickly walked back at Davos, the episode was a reminder of how abruptly geopolitical risk can re-emerge. Yet markets largely shrugged it off, highlighting their resilience to headline-driven volatility. The “buy-the-dip” trade — closely tied to the so-called “TACO trade” (Trump Always Chickens Out) — continues to deliver, at least for now. The market may feel unsettled to many, but it's still up +1.7% year-to-date, dragged higher by a robust materials sector, which has already surged +9.3% in 2026.
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