The big picture
Australian share markets pulled back last week as investors grew concerned about the escalation of conflict in the Middle East and the potential impact of any prolonged disruption to global energy supplies, with flow on effects for fuel availability, inflation and monetary policy.
In Australia, economic growth surprised to the upside, with GDP rising 0.8% for the quarter, ahead of expectations, reinforcing the Reserve Bank’s view that the economy may be running too hot. Governor Michele Bullock noted that it is too early to assess the economic fallout from the conflict.
In the US, markets were volatile as higher oil prices added to inflation pressures, while weaker labour market data raised concerns about slowing growth, increasing concerns about stagflation.
Oil has since moved above USD100 a barrel for the first time since 2022, with higher shipping insurance costs and potential supply disruptions lifting risks for global trade, including Australian exports.
In China, authorities set a lower GDP growth target for 2026, reflecting softer domestic demand and weaker global conditions.
Looking ahead, markets will focus on key consumer and business confidence indicators and inflation data in Australia, US inflation figures and ongoing geopolitical developments, which are likely to remain a key driver of market sentiment.
Oil prices surge: What it means for inflation, Australian interest rates and investors with Matthew Haupt and Damien Boey
Watch WAM Leaders (ASX: WLE) and WAM Income Maximiser (ASX: WMX) Lead Portfolio Manager Matthew Haupt and Portfolio Strategist Damien Boey as they unpack the forces shaping markets today, from rising oil prices and geopolitical tensions to the growing impact of artificial intelligence (AI). They explore what these shifts mean for inflation, Australian interest rates and global supply chains, and discuss how AI investment is being funded and its potential implications for private credit markets.
Stock watch
In the past two weeks, the price of oil has risen 40% to above USD100 per barrel. Sustained higher oil prices are a tailwind for energy producers, including Woodside Energy (ASX: WDS), which benefits from oil linked contracts that lift revenue and expand profit margins. An oil price sensitivity analysis suggests that for Woodside, a USD10 increase in oil prices to around USD80 per barrel (which has already been eclipsed) is associated with a low double digit uplift in EBITDA (earnings before interest, tax, depreciation and amortisation). A further increase from USD80 to USD90 a barrel is associated with a high single digit uplift. With oil prices now above these levels, earnings outcomes will depend on the duration of higher prices. Following Woodside’s recent strong FY2025 result, which contained few surprises, we met with management. We continue to have confidence in the outlook for the business and it remains a core holding in the WAM Leaders investment portfolio.
Lottomatica Group (MI: LTMC), the operator of Italy’s largest integrated gaming platform, reported a solid FY2025 result last week, lifting its share price. FY2025 net income and FY2026 guidance were both slightly ahead of expectations. A key positive from the result was the announcement of an expanded share buyback. The company plans to repurchase up to 12.5% of its shares over the next 18 months, equivalent to around EUR700 million at the current share price. We hold Lottomatica in the WAM Global (ASX: WGB) investment portfolio as it is well positioned to benefit from the ongoing shift to online gaming in Italy, operating within a favourable regulatory environment. The growing online mix is lifting margins and cash flow, which has allowed for the accelerated buyback. As free cash flow generation accelerates further, the market is increasingly focused on the potential for acquisitions, an area where Lottomatica has a strong track record.
In the media
Upcoming Results Webinars
We have begun hosting the FY2026 Interim Results webinars across our listed investment companies (LICs) and the Future Generation companies.
Webinars this week:
Tuesday 10 March 2026 at 11:00am (Sydney time), WAM Leaders (ASX: WLE) FY2026 Interim Results Q&A Webinar. Register here.
Wednesday 11 March 2026 at 11:00am (Sydney time), WAM Income Maximiser (ASX: WMX) FY2026 Interim Results Q&A Webinar. Register here.
Thursday 12 March 2026 at 2:00pm (Sydney time), Future Generation Australia (ASX: FGX) FY2025 Q&A Webinar. Register here.
Friday 13 March 2026 at 10:30am (Sydney time), WAM Capital (ASX: WAM), WAM Microcap (ASX: WMI), WAM Research (ASX: WAX) and WAM Active (ASX: WAA) FY2026 Interim Results Q&A Webinar. Register here.
2026 National Shareholder Presentations
The Wilson Asset Management and Future Generation teams look forward to connecting with shareholders across Australia at the 2026 National Shareholder Presentations. Register here and see below for the event dates.
You asked, we answered
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A. Whether you are new to investing or are a seasoned investor, beginning your investment journey with Wilson Asset Management is simple. Shares in our nine LICs and the two Future Generation LICs are listed on the Australian Securities Exchange (ASX). Follow the steps here to get started and learn the key benefits of investing with us.
Index returns performance table
