NEWS + VIEWS – 08/05/2026
MARKETS
Global share markets were mainly driven by a mix of strong corporate earnings, AI optimism, geopolitical tensions in the Middle East, and shifting expectations for interest rates over the past week. US and Japanese markets rallied strongly as major technology companies delivered better-than-expected earnings and investors continued to back AI-related spending and semiconductor growth. At the same time, markets reacted sharply to developments involving the Strait of Hormuz, which pushed oil prices higher earlier in the week before easing on hopes of a diplomatic breakthrough.
The Australian share market was influenced by many of the same themes, particularly commodity prices, US market performance, and expectations around interest rates. Investors also responded to strong offshore tech sentiment, although the Australian market lagged somewhat because it has less exposure to large technology companies and greater exposure to banks and resources.
Over the past month, the S&P 500 has significantly outperformed the ASX 200 (see chart below). The S&P 500 has rallied 11%, driven by strong AI-related earnings and profit results from major US technology companies. Meanwhile, the ASX 200 has been broadly flat, weighed down by higher interest rates and weakness in bank and consumer sectors. The reason for the divergence is that the ‘Magnificent 7’ - Apple, Microsoft, Nvidia, Amazon, Aphabet, Meta and Tesla - account for more than a third of the S&P 500 by market value.
Source: IRESS
COMPANY NEWS
Woodside Energy (WDS) released a mixed first quarter update, with operating revenue around US$3.26 billion (slightly lower year-on-year but ahead of expectations) and production of 45.2 million barrels of oil equivalent (MMboe), down -8% due to cyclone-related disruptions in Western Australia. However, higher spot prices lifted the average realised price to about US$63 per boe, while sales volumes rose modestly and key assets maintained high reliability, allowing the company to keep its full-year production guidance unchanged at 172-186 MMboe.
Woolworths (WOW) reported solid third quarter sales, with group revenue rising 4.5% to $18.1 billion, driven by strong supermarket performance (5.9% growth) and continued momentum in e-commerce and customer demand despite cost-of-living pressures. However, the result was overshadowed by rising fuel, freight and supplier costs, which led to a downgrade in earnings expectations and initiatives such as a temporary price freeze on hundreds of essential items.
Coles (COL) delivered more moderate growth, with total sales increasing 3.1% to $10.7 billion, supported by 4% growth in its core supermarkets division, while its liquor segment declined. COL highlighted resilient, value-focused consumer behaviour and efforts to contain inflation, but also flagged ongoing pressure from higher supplier, fuel and packaging costs that could weigh on margins going forward.
ANZ reported a cash profit of $3.78 billion for the half year (excluding significant items), up 14% on the previous half. Credit quality remained strong, with minimal increases in non-performing loans and steady customer savings buffers. The bank maintained its $0.83 per share dividend but increased the franking to 75%. ANZ warned that prolonged tensions in the Middle East could slow economic growth in the coming years.
For the six months ended 31 March, NAB reported a 2.3% increase in cash profit to $3.59 billion, excluding a $949 million notable item related to a change in the bank’s software capitalisation policy. NAB maintained its $0.85 dividend per share. The bank confirmed that its credit impairment charge increased to $706 million, up from $485 million in the previous half, which included a $300 million increase in forward-looking provisions linked to potential stress from the Middle East conflict.
Westpac (WBC) reported a weaker-than-expected $3.5 billion net profit for the half year excluding notable items, down -1% from the previous half, hurt by higher credit impairment charges and weaker treasury income. The bank’s credit quality remains stable with its share of stressed loans falling to 1.16% of total exposures. WBC increased its interim dividend $0.01 from a year ago to $0.77 per share.
Sigma Healthcare (SIG) announced strong Chemist Warehouse sales growth, with Australian stores up 16.7% and international stores up 24.7% so far this financial year. The company also announced plans to enter the UK through a joint venture with GreenLight Healthcare, initially rebranding up to five London area pharmacies under the Chemist Warehouse banner, with plans for more if successful. SIG is also investing around $40 million in its New Zealand supply chain.
Amcor (AMC) reported strong third quarter earnings, with sales jumping 77% to US$5.9 billion year-on-year, driven by the successful integration of Berry Global. Management said that synergy benefits from the Berry acquisition reached US$77 million during the quarter, at the upper end of expectations, while margins improved despite softer global packaging demand and ongoing geopolitical volatility. AMC’s share price rose 4% on the day of the announcement.
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