Australian shares experienced a retreat near midday AEST today, as fresh strikes in the Middle East sent global oil prices significantly higher. This geopolitical development saw energy giant Woodside rally, while the broader ASX market moved lower, and gold prices slid. The Australian dollar also felt the pressure, slumping to a two-month low against major currencies, reflecting investor caution amidst rising international tensions.
In significant corporate news, Lendlease has announced the appointment of Nick O’Neil, currently from AustralianSuper, as its new Chief Executive Officer. Lendlease is a multinational property and infrastructure company, developing and managing projects globally, including urban regeneration and construction. This external appointment comes as the company navigates efforts to execute a dramatic turnaround of its business. Concurrently, ANZ chief Shayne Elliott urged top lenders to re-engage with wealth management and insurance offerings, citing a decline in the sector’s profitability over recent years and advocating for more ambitious service provisions.
Global market sentiment remains on edge, with Wall Street observers expressing concern over rising inflation and recent geopolitical actions. The VIX volatility index, often referred to as the ‘fear index’, has seen a notable increase of 44 per cent in just four days, signalling heightened investor apprehension. These jitters are attributed to fresh strikes in the Middle East and broader worries regarding artificial intelligence returns. Furthermore, the accounting body Chartered Accountants Australia and New Zealand has initiated a practice review into ethics and data handling at the ‘big four’ firms – KPMG, Deloitte, EY, and PwC – alongside four other large professional firms, underscoring a focus on professional standards within the financial services sector.
