Season 5 Episode 26 – Oil and AI Concerns
In Season 5, Episode 26 of the #AtlasWeeklyRecap, Oil and AI Concerns, Financial Planners Martin Jack and Shaun Fairon discuss the global sharemarket pullback driven by renewed AI valuation fears and an oil price shock. Japan (-6%), China (-5.3%) and the US (-1.6%) led the falls after Chinese firm Moonshot’s Kimi K3 model sparked fresh DeepSeek-style disruption fears. South Korean chipmakers were hit hardest, falling roughly 25% from their highs even though earnings remained intact. This pushed valuations down to just six-to-seven times forward earnings, reflecting growing doubt about future AI-driven growth rather than any current profit decline. Australia held up better (-0.1%) due to lighter AI exposure, even as oil-driven costs weighed on BHP and Port Hedland.
Adding to inflation concerns, renewed US-Iran tensions disrupted the Strait of Hormuz (~20% of global oil/gas flow), pushing oil prices higher despite bypass routes and softer demand cushioning the impact. This threatens to undo progress from softer-than-expected June US inflation data. However, in Australia rising petrol prices ($1.53 to $1.73/litre since end of June) keep another RBA rate hike in play.
Next week’s watchlist: US earnings season (~24% growth expected), global PMIs, the ECB decision, inflation data from Canada, Japan and New Zealand, Australian employment figures, and ongoing Middle East developments.
Weekly Market Recap
Tune in for a concise update specifically tailored for Australian expats, as we cover the latest movements in equity, property, and currency markets. In addition, Martin and Shaun also highlight the key events to watch in the week ahead — from important economic data releases to upcoming interest rate decisions and potential policy changes. Moreover, they provide context to help you understand how these developments may impact markets and your financial planning.
Weekly Recap Related Links
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- Expat Chat Podcast – https://atlaswealth.com/news-media/australian-expat-podcasts/expat-chat-podcast/
- Expat Mortgage Podcast – https://atlaswealth.com/news-media/australian-expat-podcasts/expat-mortgage-podcast/
About Atlas Wealth Group
The Atlas Wealth Group was born out of growing demand from Australian expats who were seeking professional guidance. Consequently, we are specialists in providing tax, financial planning, wealth management and mortgage services to every Australian expat. Whether you are based in Asia, the Middle East, Europe or the Americas, we have the experience in providing essential financial services to the expatriate community.
Furthermore, to find out more about the Atlas Wealth Group and how we can support Australian expats, please visit atlaswealth.com. In addition, to get in touch with Martin or Shaun regarding the Atlas Weekly Recap episode Oil and AI Concerns, please visit www.atlaswealth.com/contact
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