Investment update - March 2026

In March, the US and Israel military conflict against Iran escalated, causing widespread disruption and drove markets sharply lower. West Texas Intermediate (WTI) crude oil prices surged 50% as tankers stopped transiting the Strait of Hormuz, while commodities were the only strong performing asset class. Equity markets fell sharply, with Australian equities down 7.3%, developed international equities falling 5.8% and emerging markets down 9.5%. 

Fixed income markets also declined, with Australian fixed income down 1.4% and international fixed income falling 1.9%, while gold dropped 11.8%. There was broad based deleveraging and significant increase in cash as investors reduced risk exposures. 

In the US, the economy added 178,000 jobs, the unemployment rate fell to 4.3% from 4.4% in February and the Federal Reserve kept interest rates steady. In Australia, the RBA raised the cash rate by 0.25% to 4.1% while consumer confidence plummeted to record lows driven by higher fuel prices and cost of living pressures.

Read the Investment update - March 2026