Even if you weren’t a Telstra customer, chances are you were influenced by network outage on Wednesdayas its share price subsequently fell.
However, equity markets were more impacted resumption of hostilities in the Middle East This has caused a spike in oil prices and will likely lead to higher gasoline prices in a few weeks.
On a positive note, the Australian share market has welcomed the arrival of a new company that has successfully listed.
And one of our largest banks now expects interest rates to fall sooner than expected, albeit with the caveat that they must rise first.
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Gasoline prices are rising, but less than feared
Australian drivers are starting to feel the impact Government decision to reduce temporary discount on fuel excise duty.
The national average price of unleaded gasoline rose 3.2 cents per liter over the past week to just under $1.63 per liter.
Although prices rose, the increase was far less than the 16 cents per liter that experts had feared after the fuel excise rebate was halved.
Lower global oil prices initially offset the impact, but renewed conflict in the Middle East this week sent the price of Brent crude rising again, approaching US$80 ($115) a barrel.
This raises the possibility that fuel prices could jump in the coming weeks, despite higher fuel supplies in June this year compared to June 2025.
Rate cuts will happen first, but first they will rise
Westpac now expects the RBA’s first rate cut to come in 2027 rather than 2028, bringing it in line with other major banks.
However, chief economist Lucy Ellis still believes the Reserve Bank will have to raise interest rates twice before then as inflation risks remain.
A former aide to the RBA governor says inflation was high before the war, and while some businesses are suffering higher fuel costs, other factors are also contributing, such as higher prices for electronics due to demand for AI.
For borrowers, this means that uncertainty about mortgage rates is unlikely to go away any time soon.
Telstra network problems hit investors
While Telstra’s customers and business have suffered due to network outage on Wednesdayits shareholders also suffered.
Shares fell 3.3 percent after the glitch occurred.
The company is one of the most widely held shares in Australia, with many investors likely to have direct ownership since its initial flotation in 1997, while others will have access to their shares through their super funds.
Australia’s biggest IPO of the year attracts investors
Construction company FDC Consolidated became the biggest IPO of the year in Australia, raising $400 million.
Its shares rose 17 percent on their debut Thursday, then closed more than 12 percent above the offer price on the first day and gained another 3 percent on the second day.
This suggests that investor appetite for new listings remains high after record demand for SpaceXIt was the first time Australian retail investors had access to a major US company through an IPO on Wall Street.
However, the challenge is to attract more companies to list on the Australian share market, and only 17 companies have been added to boards this year.
That’s the recap of this week’s On the Money. Prefer to listen? The On the Money podcast brings you the latest news every weekday. You can tune in here or wherever you get your podcasts.
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