SYDNEY, March 28, 2026, 04:14 AEDT.
Australian stocks barely budged Friday, the S&P/ASX 200 down just 0.1% at 8,516.30. Still, that was enough to break a three-week slide, wrapping the week up 1.2%. Caution lingered in the wake of Iran’s rejection of a U.S. ceasefire plan, leaving investors on edge. “If the war drags on, growth and inflation risks will compound and weigh on equities,” Capital.com’s Kyle Rodda noted. Indo Premier
This is hitting just as the market digests inflation figures that already feel behind the curve after the latest energy price spike. February’s consumer price index didn’t budge for the month. Year-on-year, inflation eased to 3.7%, and core inflation—excluding the more volatile sectors—stayed put at 3.3%. But VanEck’s Russel Chesler dismissed the data as “largely irrelevant now,” with rising energy expenses starting to seep into costs for transport, goods, and services. Reuters
The Reserve Bank of Australia isn’t immune to the pressure. Assistant Governor Christopher Kent flagged concerns this week, saying a prolonged conflict risks slowing growth and shaking inflation expectations. The central bank just hiked rates again—second meeting in a row—taking the cash rate to 4.1% this month.
Friday’s action highlighted just how thin the buying was. Energy managed a 0.88% climb, materials inched up 0.18%. Information technology slumped 1.53%; financials drifted down 0.21%. The gold stock index dropped 1.5%. Santos picked up 1.3%, Fortescue advanced 1.7%, Rio Tinto put on 1.5%.
The session kicked off on a softer note—ASX 200 slipped 0.4% out of the gate, weighed down by banks, miners, and gold shares. BHP dropped 0.6% early on, while Santos managed to edge higher, one of the limited gainers among the larger names.
Oil prices refuse to settle. Brent crude climbed 2.45% Friday, landing at $110.66 a barrel. Macquarie analysts aren’t ruling out $200 if fighting stretches past June. “Oil is trading on war longevity, not just headlines,” said Priyanka Sachdeva at Phillip Nova. Reuters
Wall Street came under pressure as well. The Nasdaq slipped into correction territory, dropping over 10% from its recent peak, while oil prices rose and investors grew anxious that the conflict could sustain inflation and push back any rate cuts.
Australia gets a breather, but little certainty. The market’s weekly bounce offers some relief. Still, it leaves open the question: are oil, rates, and geopolitical tensions finished disrupting prices?
