The ASX 200's Tuesday, March 10th, trading session was a rollercoaster, with a high-volume pre-market and periodic updates throughout the day. The index opened with a 1.28% gain, recovering from yesterday's losses, but the story took a sharp turn with the Westpac-Melbourne Institute Consumer Sentiment Index. The index rose 1.2% to 91.6 in March, but intra-week data pointed to a sharp deterioration, with the 'economy, next 12 months' sub-index falling 2.9% and the 'time to buy a dwelling' index hitting a new cycle low. This was a stark reminder that the Iran conflict is weighing heavily on household confidence.
In other news, Orica's first half EBIT was slightly above the prior year, with a new cost-out program targeting $100 million in annualised savings. FleetPartners approved a $20 million on-market share buyback, while Pantoro cut its FY26 production guidance below its prior range. Westgold Resources took FID on a capacity expansion at its Higginsville Processing Hub, and Woodside Energy commenced drilling at the Trion Field in the Gulf of Mexico.
The market's reaction to the oil price spike was particularly interesting. The ASX 200 bounced back, with Tech and Healthcare leading the way. However, the S&P 500 Energy sector underperformed, and US energy stocks finished slightly lower. The G7 finance ministers met to coordinate on Middle East energy disruptions but stopped short of releasing strategic oil reserves.
The overnight session was dominated by Trump's remarks about the Iran war, which caused a sharp reversal in US indices and oil prices. Trump claimed the war was 'very complete', but mixed signals from the Pentagon suggest the conflict is far from resolved. The market's reaction to this news was swift, with major US benchmarks reversing earlier declines and closing the session higher.
In conclusion, the ASX 200's Tuesday session was a reminder of the market's volatility and the impact of geopolitical events. The Iran conflict continues to weigh on household confidence, and the oil price spike has caused a re-pricing of ECB and BOE rate paths. Trump's remarks about the war added a new layer of uncertainty, but the market's resilience is notable. As always, investors should be prepared for sudden shifts in sentiment and remain vigilant in the face of geopolitical risks.
