Blog week ending, 28th August 2026
Markets:
- A mixed bag for local and global equity markets this week, with the local market giving up gains on RBA rate hike concerns while global markets were led by Nvidia’s results.
- Nvidia reported an eagerly anticipated bumper result, with second-quarter revenue topping market forecasts, as did its guidance for current quarter sales of US$108 billion. The company said revenue growth of 70% is now expected in the company’s 2028 fiscal year.
- In local stock news, the market got the wobbles after three of the big four banks warned that interest rate hikes could come sooner than expected. The financials sector fell to its lowest close since mid-June, while consumer discretionary retail companies took the biggest hit.
- Woodside reported a bumper first-half underlying profit of $1.9 billion, fuelled by a realised oil price 20% higher than a year earlier.
- Corporate Travel Management has taken a big step towards resuming trading on the ASX, releasing its audited accounts. The company posted a loss of $346.7 million for the 2025 financial year, but its underlying earnings were $83.6 million. The company plans to release its results for the year ended June 30 and resume trading soon after.
- Oil prices fell early in the week on renewed diplomatic talks between Iran and Oman before recovering late in the week on fading diplomatic hopes.
- The Australian dollar continued its march higher against the US dollar, with Australian inflation topping forecasts and adding to rate hike risks. The US dollar also rose this week as US data lifted Fed hike bets.
Economy:
- Australian inflation increased 1% in July from the previous month, after edging down 0.1% in June, marking the first monthly increase and the fastest pace in four months, while also coming in ahead of expectations. The RBA’s preferred measure held steady but remains at its highest level since September 2024 and above the RBA’s target band.
- Australian household spending rose 1.1% in July, following an upwardly revised 1% increase in June and marking the third straight monthly gain. The result came in well ahead of expectations, with spending increasing across all components.
- Total Australian construction work declined 2.1% in the second quarter, reversing an upwardly revised 4.3% expansion in the previous quarter and defying expectations for a 0.5% increase. It was the first contraction since the third quarter of 2025, driven by a sharp downturn in engineering work. Growth in building construction also eased.
- The US economy expanded at an annualised rate of 1.5% in the second quarter, slowing from 2.1% in the previous quarter and matching estimates. Personal consumption recorded its strongest increase since last year, fixed investment climbed strongly, and residential investment rose. Government spending fell, while net exports also weighed on growth.
- The US central bank’s preferred measure of inflation increased by 0.2% in July from the previous month, as expected. Compared with a year earlier, inflation was up 3.3%, well above the bank’s 2% target.
- Federal Reserve Chair Kevin Warsh will deliver his first much-anticipated Jackson Hole keynote speech on Friday (US time), with traders and market participants looking for clues about the bank’s next move.
- A measure of US manufacturing and services activity rose in July, marking the strongest expansion since April 2022. The improvement was driven by the revival in the services sector, which more than offset a slowdown in manufacturing growth.
- US consumer confidence fell in August to the lowest reading since January, down from a downwardly revised July reading and below expectations. Deteriorating outlooks for business conditions and the labour market were the primary causes.
- Sales of new single-family homes (detached housing) in the US sank by 10.5% from the previous month, marking the sharpest drop and the lowest level since January, while missing market expectations of a softer decline.
- Eurozone manufacturing activity rose in August from the previous month, surpassing market expectations and recording the fastest pace of expansion in activity in four years. Germany led the charge.
Politics:
- Iran threatened a military response to any US sanctions, as US Treasury Secretary Scott Bessent seeks to increase economic pressure on Iran and secure greater cooperation from key trading partners, including China, India, and Germany, in limiting Iran’s trade and financial activity.
- The Iranian President called for the war with the US to end, arguing that Tehran should conclude the conflict now while it still retains leverage and national dignity. However, Iran’s security chief warned that all Gulf traffic could be disrupted if neighbouring countries support what he described as Trump’s economic campaign against Iran.
- US President Trump said all mines had been cleared from the Strait of Hormuz, while Iran granted permission for Iraqi oil tankers to transit the Strait.
- Late in the week, reports emerged that Iran was preparing a list of conditions for reopening the Strait after mediators asked Tehran to set them out, with an end to the war reportedly among the conditions.
- The Australian Federal government has secured broad agreement with state and territory leaders on developing new data centres but appears to have made a major concession, setting aside demands that they be powered by renewable energy.
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
