Blog week ending, 2nd October 2026
Markets:
- Local and global equity markets broadly weakened this week on mounting concerns regarding rising oil prices and government bond yields.
- Australian shares suffered their steepest one-day fall since early March on Thursday, with the ASX 200 down 2% to its lowest level since mid-June. The sell-off came as long-term bond yields resumed their climb and a midweek relief rally following the RBA decision and CPI data unwound.
- The global bond sell-off intensified, with US 10-year Treasury yields briefly topping 5.3%, its highest level since 2007, while the 30-year yield rose to its highest level since 2002. Japan’s 10-year government bond yield was on track for a fifth straight quarter of double-digit increases.
- One of Australia’s largest private credit managers, Metrics Credit Partners, froze investor redemptions from some of its funds after its auditor declined to sign off on the full-year accounts for three listed funds before the 30 September lodgement deadline. Metrics manages around $40 billion in assets.
- Shares in Northern Star Resources jumped more than 6% on Monday after the gold miner confirmed that it had received and unanimously rejected a takeover proposal from Gold Fields. The confidential, non-binding proposal valued Northern Star at $27.00 per share, a 22% premium to its previous share price.
- Lynas Rare Earths agreed to acquire Meteoric Resources in an all-scrip deal valuing the explorer at around $968 million, a 68.4% premium to its last close. Lynas shares fell 8.6% on the news, as the deal also carries a US$498 million capital expenditure bill to develop Meteoric’s Brazilian project.
- Oil prices rose again this week on fears that global shortages could worsen. China halted fuel exports, while reports indicated that the US was sending more troops and carriers to the Middle East.
- The Aussie dollar slipped below US70 cents despite the RBA rate hike as the US dollar strengthened to its highest closing level in two months.
Economy:
- President Trump rejected Iran’s highly conditional seven-day plan to reopen the Strait of Hormuz, saying that desperation was driving Tehran’s push for a deal. Indirect talks continued through Qatari mediators, with Iran confirming mid-week that it had received a formal US response.
- President Trump said that he faced a choice between striking Iran and reaching a deal, while claiming that the US had “virtually total control” of the Strait. Tanker attacks in the waterway continued during the week.
- UK Chancellor John Healey used his first Labour Party conference speech to pledge that the government would meet its fiscal rules, ahead of his first Budget on 28 October, saying that there was “nothing progressive about losing control” of public finances.
Politics:
- Energy risks rose over the weekend as Houthi forces targeted Riyadh for the first time and Ukraine struck the Moscow oil refinery. The developments came ahead of US-China trade talks in New York, which US Treasury Secretary Bessent later described as “very successful”.
- US Treasury Secretary Bessent announced a two-month tariff truce with China, shorter than originally floated.
- Australia’s corporate watchdog has put the private debt industry on notice to expect more enforcement action in one of its sternest rebukes of poor practices, following the insolvency of Sydney developer Bathla Group. The news comes after Australian Retirement Trust said it had a small exposure to Bathla.
- President Trump told the UN that he expected a deal with Iran to be reached shortly after the November midterm elections, saying the US faces a choice between a deal and “wiping out Iran”.
- OpenAI’s artificial intelligence agents appear to have used a German coding website to coordinate attempts to gain access to Australian government Medicare data.
This information is general advice and does not take account of investors’ objectives, financial situation or needs. Before acting on this general advice, investors should therefore consider the appropriateness of the advice having regard to their objectives, financial situation or needs.
Written by Christopher Lioutas
Chairman – Harbourside Investment Management
