Daily Market Update: 17 March 2026

ASX (ASX:XJO) posts lowest weekly close since December as Iran war wipes $190bn from market

The Australian sharemarket fell to its lowest weekly close since December as the escalating US-Israel war with Iran sent oil prices higher and fuelled expectations of an RBA rate hike on Tuesday. The S&P/ASX 200 slipped a further 11.9 points, or 0.1 per cent, to 8,617.1 on Friday, capping a 2.6 per cent loss for the week. Since the war began on February 28, the benchmark has slumped 6.3 per cent, wiping out more than $190 billion in market value. Materials weighed as BHP (ASX:BHP) dropped 2.3 per cent to $49.80 after China widened a ban on its iron ore for the second time in two weeks, though Fortescue (ASX:FMG) gained 4.1 per cent as Macquarie noted it stood to benefit from its rival’s misfortune. Northern Star (ASX:NST) tanked 18.8 per cent after warning that hitting the bottom end of its production guidance would be challenging, citing weaker milling at the Kalgoorlie Super Pit and reduced output at Jundee. Syrah Resources (ASX:SYR) plunged 29.2 per cent after the US International Trade Commission rejected tariffs on Chinese graphite anode materials. Banks provided support as an expected rate rise on Tuesday would boost net interest margins – NAB (ASX:NAB) rose 1.5 per cent and CBA (ASX:CBA) 1.3 per cent. Energy stocks firmed as oil traded flat around US$101 a barrel, with Yancoal (ASX:YAL) climbing 4.5 per cent to cap a nearly 20 per cent weekly gain as the Middle East conflict buoyed coal prices. Counter-drone stocks rallied after Electro Optic Systems (ASX:EOS) surged 18.4 per cent to a record $11.74 on a US$42 million contract, while DroneShield (ASX:DRO) gained 6.4 per cent.

Lifestyle Communities (ASX:LIC) soars 17% on Hometown stake; Immutep (ASX:IMM) collapses on drug trial failure

In company news, Lifestyle Communities (ASX:LIC) soared 17.2 per cent to $5.31 after US-based prefab giant Hometown bought 11.9 million shares from HMC Capital (ASX:HMC). Dalrymple Bay Infrastructure (ASX:DBI)rose 6 per cent after pricing its first $350 million five-year fixed-rate bond in the Australian Medium-Term Note market. Qantas (ASX:QAN) fell 0.7 per cent to $8.61 after reaching a $105 million settlement in the class action over flight credits issued during COVID-19. At the other end, small-cap biotech Immutep (ASX:IMM) plummeted 88.6 per cent to 4.5¢ after its lead drug candidate failed as a lung cancer treatment.

Wall Street whipsaws as Iran war escalates; Brent crude tops US$100, megacaps slide

Volatility gripped Wall Street as the S&P 500 erased a nearly 1 per cent gain to finish lower, with escalating US strikes on Iran pushing Brent crude above US$100 for the first time since the conflict began two weeks ago. A gauge of megacap stocks has now fallen more than 10 per cent from its record. Treasuries rallied initially on soft economic data – consumer spending barely rose in January and consumer sentiment hit a three-month low – before longer-term bonds sold off on inflation fears stoked by surging energy prices. The core PCE inflation gauge matched estimates, while the dollar rose to its highest since December. The Fed is widely expected to hold rates steady next week, with investors focused on any shift in outlook given the war’s impact on both inflation and growth. In corporate news, Adobe (NYSE:ADBE) slipped after CEO Shantanu Narayen announced his resignation amid scepticism over the company’s AI strategy, while Carvana (NYSE:CVNA) approved a 5-for-1 stock split and Ulta Beauty (NYSE:ULTA) sank after guiding toward the low end of expectations.