FEAR & GREED | Business News Afternoon Report | ASX down 1.3pc on Iran, inflation fears
Mar 3, 2026
Markets wobble after Middle East tensions that pushed the ASX lower and reignited inflation and rate-hike worries. Big individual stock swings grab attention with dramatic gains and losses. AWS data centres suffer drone damage causing regional outages. Travel chaos around the Melbourne Grand Prix disrupts hotels and flights. Political visits highlight trade, defence and critical minerals.
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Markets Reacted To Middle East Risk With Sector Rotation
- The ASX fell 1.3% as Middle East conflict raised oil and inflation fears, prompting talk of another rate hike as early as this month.
- Energy and coal jumped (New Hope +7.4%, Yankol +~5%, coal up 8.6%) while miners and BHP retreated, showing sector rotation.
Corporate Moves Can Outweigh Market Direction
- Magellan jumped almost 22% after a capital raising linked to its merger with Baron Joey, while Life360 fell over 17% on weak Q1 guidance.
- These outsized moves show how corporate actions and guidance can overpower broader market trends.
Drone Strikes Impaired Key AWS Regional Hubs
- Amazon Web Services suffered drone strikes on three Middle East data centres, causing elevated error rates and prolonged recovery due to physical damage.
- Two regional hubs remain significantly impaired after direct strikes in the UAE and nearby damage in Bahrain.