ASX hits 3-month low; Apple’s age verification; ‘26 Champagne vintage more alcoholic

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FEAR & GREED | Business News 18 min 2 speakers 4 chapters transcribed just now
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What is the main topic discussed in this episode?

Michael Thompson 0:06
Welcome to Fear and Greed, business news you can use. Today, the local share market hits a three-month low as big names BHP and Commonwealth Bank are sold off. The slowing mortgage market starts to eat into profit margins and Australian adults will soon have to prove they are at least 18 years of age to get the full Apple experience. Plus, another well-known retailer fails. And the hot summer in Europe means this year's champagne vintage will be more alcoholic than ever. It is Wednesday, the 16th of September, 2026. I'm Michael Thompson, and good morning, Sean Aylmer. Good
Sean Aylmer 0:40
morning, Michael. A story for you, that one. The champagne vintage.
Michael Thompson 0:44
Oh, good. I thought you were about to say I was proving I was 18 to get the full Apple experience.
Sean Aylmer 0:49
You're well and truly 18, Michael.
Michael Thompson 0:50
Yes, thank you. The main story this morning, Sean, the Australian share market hit a three-month low yesterday morning as rising oil prices and mounting expectations of interest rate increases in the US and in Japan as well. These things are not great for sentiment. The S&P ASX 200 hit, what, 8,672 points at the close. That was down 0.9% or 74 points. That's the lowest close since early June. Brent futures climbed to $107 a barrel as the hostilities in the Middle East continued. There was a key east-west pipeline in Saudi Arabia that was temporarily shut because of a drone attack. And It's all threatened. I mean, that is a critical pathway through the region, and that threatens up to 4% of global oil supply.
Sean Aylmer 1:45
I don't want to sound like a broken record, but we know higher energy prices pushes up inflation expectations. That puts upward pressure on bond yields. 10-year government bond yields briefly topped 5% in the US for the first time in three years. The local 10-year return is 5.4%. That's about a 15-year high. As we record... Could be happening right now, Michael. Could be. The US Fed is expected to announce an increase in interest rates to rein in inflation. The local bond market put the chance of another rate hike here at 84%. Rate rises push up borrowing costs from home loans to business loans and credit cards. Great way to slow the economy if that's what you want to do. And it seems that is exactly what the central banks want to do.
Michael Thompson 2:31
Indeed. What was noticeable yesterday, I thought, on the local market, Sean, was the drop in some of the biggest companies in the country. BHP was off more than 2%, as was Macquarie Group. Commonwealth Bank fell 1.6%. Woodside and Rio Tinto, they were both off 2.2%. These are some big drops for some big companies.
Sean Aylmer 2:51
Yeah, it wasn't a great day and it really hasn't been a good few weeks. The shift in sentiment around inflation and interest rates and global growth has hit BHP in particular. It's down 12% in just three weeks. Since the Commonwealth Bank's most recent peak six weeks ago, it's off 16%. National Australia Bank, Westpac, they've had big falls as well. Property leader Goodman, very responsive to interest rates. Since its June peak, it's off 20%. The exception among the large caps still is CSL. Since it's low in June, it's up nearly 90%.

Why did the ASX hit a three‑month low and which big stocks led the sell‑off?

Sean Aylmer 3:29
Odo have bought it back then. The more defensive stocks like Woolies, Coles, Telstra have also outperformed. But just at the moment, equities are just a bit on the nose.
Michael Thompson 3:38
Let's talk property, shall we? And Australia's housing downturn is starting to eat into the profits that homeowners make when they sell. Although it's not exactly dire just yet, the vast majority do remain comfortably ahead. Cotality says that 95.4% of homes resold in the June quarter made a nominal profit of That's down from a 21-year high, though, of 96.1% in March. The median profit slipped from a record $378,000 to $371,000, Sean.
Sean Aylmer 4:13
Yeah, so it's not dire times for those trying to sell. Long-term owners remain well protected because we have had years and years of rising prices, so let's not get too carried away with this. Homes sold for a profit had typically been held for just over nine years. Obviously, more recent buyers are more exposed to the downturn, particularly those who got some of those government 5% deposits earlier.

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