Investment update - February 2026
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Published on 20 Mar 2026In February, markets were dominated by escalating conflict between Iran, Israel and the United States, with strikes reported across multiple Iranian provinces and retaliation spreading across the Middle East. Commodity markets reacted quickly, with West Texas Intermediate (WTI) crude rising 3.3% in February and climbing a further 10% in early March, while gas prices surged after attacks on Qatari production. Gold climbed 4.8% as investors sought safe-haven assets during the geopolitical turmoil.
Despite the uncertainty, financial markets delivered mixed results. The S&P/ASX 200 rose 3.9%, emerging markets gained 3.7% and the Nikkei surged 10.4%, following Japan’s election result. However, technology sentiment weakened, with the Nasdaq falling 3.4%, Commodities remained strong, while global and Australian bonds rose 1.4% and 0.9% respectively.
In the US, inflation eased to 2.4%, payrolls increased by 130,000 and unemployment edged down to 4.3% while the Federal Reserve kept rates unchanged. In Australia, the RBA lifted rates to 3.85% as inflation held at 3.8%. In Europe, growth remained subdued while inflation stabilised near target, Japan’s economy strengthened and China’s inflation slowed sharply to 0.2% in January as activity moderated during the Lunar New Year period.