The Australian share market enjoyed a fairly strong week despite a slight fade in values on Friday, ending the week up 4.4%.
That represents the strongest week since October 2022, although the ASX 200’s fall of 12.6 points, or 0.1%, to 8960.6 points was not an auspicious way to end the week.
Still, the ASX has now strung together three consecutive positive weeks, with Wednesday’s 2.6% surge a notable rise.
Eight of the 11 sectors traded lower on Friday with the cautious trading understandable as the shaky ceasefire and planned US-Iran talks in Pakistan this weekend all creating a lot of future uncertainty as to which way the war will go.
There is also plenty of uncertainty in the oil market.
Despite the oil price falling heavily during the week, traders are watching carefully to see if any tankers begin to pass through the Hormuz strait and whether Iran will continue to impose a toll on the crossing.
Tech shares follow software lower
Technology stocks followed US software shares lower, with WiseTech Global shares (ASX: WTC) down 2.6% to $37.63, Xero shares (ASX: XRO) down 2.7% to $71.46, and Life360 shares (ASX: 360) down 3.3% to $19.48 after the company foreshadowed job cuts as it restructures to allow for AI innovation.
Miners fell, with Fortescue shares (ASX: FMG) down 1.3% to $20.26 as it brought forward plans to remove fossil fuels from parts of its Pilbara operations.
Pilbara neighbours BHP (ASX: BHP) shares fell 1.1% to $53.98 and Rio Tinto shares (ASX: RIO) shed 0.3% to $171.23.
Energy stocks followed the direction of oil prices with Whitehaven Coal shares (ASX: WHC) down 3.2% to $8.12 and New Hope shares (ASX: NHC) down 2.6% to $5.18.
Moving to the oil and gas sector, Santos shares (ASX: STO) fell 0.6% to $7.90 and Woodside Energy shares (ASX: WDC) dropped 0.2% to $33.28.
Real estate stronger
Some sectors were notably stronger with real estate up, as shown by a 3.2% rise in Vicinity Centres shares (ASX: VCX) to $2.56, while financials were also stronger, led by a 0.5% rise to $183.38 in the share price of Commonwealth Bank (ASX: CBA).
A resounding 92.28% of Magellan Financial (ASX: MFG) shareholders voted in favour of the $1.6 billion merger with Barrenjoey, which saw its shares rise 1.2% to $9.45.
Acceptance of a resubmission of its brain cancer imaging product by US regulators saw shares in Telix Pharmaceuticals (ASX: TLX) shares jump an impressive 7.3% to $14.64.
Positive news in the form of a government environmental approval for a proposed LNG import terminal in Geelong helped Viva Energy shares (ASX: VEA) rise 0.4% to $2.51.
Shares in wealth manager AMP (ASX: AMP) jumped 4.2% to $1.36 after chief executive Blair Vernon said the group would prioritise growth in its wealth division, tighten capital allocations and expand its use of artificial intelligence.
The week ahead
Once again, the main game for markets in the coming week will be progress in talks between Iran and the United States and whether the fragile ceasefire can be maintained.
Of secondary and related importance is the war’s potential effects on inflation and economies, with inflation data for the EU and individual European countries to be released during the week.
If Australia is much of an example, the inflation news could be worse than expected with higher fuel prices impacting a wide range of costs very quickly.
The US Producer Price Index should also be a good guide into the inflationary effect of the war as well.
RBA chiefs speaking in the US
In other news to watch, Reserve Bank Deputy Governor, Andrew Hauser, and Assistant Governor (Economic), Sarah Hunter, will be giving their perspectives on what the central bank is thinking in a series of panel discussions in the US.
Other key economic data for the week will include a wide range of Chinese releases including GDP, retail sales, and unemployment, which should provide some guide as to whether Chinese consumer spending is improving and helping the broader economy to grow.
A range of Australian companies are paying dividends this week which may induce some share buying from pleased investors.
In the US the first quarter of 2026 earnings season starts with profit reports from most of the major banks and financial companies with Blackrock’s result one that will be carefully watched.
