Ledge Finance Market Update

Global markets remain volatile as investors respond to elevated energy prices, persistent inflation pressures, rising global bond yields and ongoing geopolitical uncertainty.

Oil prices have remained above US$100 per barrel during parts of October as Middle East supply risks and shipping disruptions continue to affect global energy markets. At the same time, higher bond yields are increasing financing costs and putting pressure on interest rate-sensitive assets.

AI and technology investment remain important drivers of equity-market activity, although investors are becoming more selective about valuations, capital requirements and the path to profitability.

WA’s broader resources pipeline remains significant, with more than $50 billion in major projects underway and industry investment reaching a decade-high $34 billion, according to the WA Government.

• Oil: Brent crude has traded above US$100 per barrel during October, reflecting ongoing Middle East tensions, supply disruptions and higher transport and insurance costs
• Gold: Gold remains elevated as geopolitical risk, inflation concerns and demand for safe-haven assets continue to support prices.
• Iron Ore: Iron ore remains central to WA’s export economy, with market conditions continuing to be shaped by Chinese demand, global supply and inventory levels. India is emerging as a potentially important source of demand, with its draft national steel policy released in October targeting a major expansion in steelmaking capacity by 2047.
• Copper: Copper remains strongly supported by long-term demand linked to electrification, energy infrastructure and data-centre investment, although prices remain sensitive to global growth expectations. Glencore’s planned ASX listing this month has also renewed attention on copper exposure among Australian investors
• Nickel: The nickel sector remains under pressure following weaker global pricing and substantial supply growth, prompting restructuring and asset changes across WA. BHP’s recent agreement to sell its Kambalda Nickel Concentrator and associated tenements highlights the ongoing realignment within the sector.
• Lithium: Markets remain under pressure from earlier oversupply and softer EV demand, but there are signs of improving long-term demand from battery storage and broader electrification. WA continues to support the sector through its Lithium Industry Support Program, including fee relief for eligible projects in ramp-up phases, while the State’s broader Battery and Critical Minerals Strategy remains focused on expanding downstream processing and capturing more value locally.
• Rare earths and strategic minerals: Rare earths are becoming increasingly important to global economic and national-security strategies as governments seek to reduce reliance on concentrated supply chains. Australia and Japan strengthened cooperation on economic security in October, including critical-mineral investment and the development of more diversified supply chains. For Western Australia, that trend supports continued interest in exploration, processing and downstream investment across rare earths and other strategic minerals.
• Agriculture: WA’s agricultural sector remains exposed to seasonal variability, input costs and global commodity conditions. Grain, livestock and export markets continue to contribute significantly to the State economy, although rainfall patterns, fertiliser and fuel costs, labour availability and international demand can materially affect production and margins from season to season.