Australian share market response to Middle East events

Matthew Haupt critiques the Australian share market for underestimating the geopolitical risks associated with the ongoing events in the Middle East. He describes the market's muted reaction as indicative of a potential crisis ahead, suggesting that investors are not fully accounting for the seriousness of the situation. Haupt highlights the energy sector's performance, noting that it does not reflect the heightened risks stemming from the geopolitical landscape. He argues that despite OPEC's decision to increase production, the market's response remains inadequate given the current circumstances. He warns that the Australian market is 'sleepwalking' into a crisis, with expectations of a significant wake-up call in the near future. Haupt anticipates that the US cash market's opening will reveal further selling pressure on equities, indicating a lack of confidence among investors. Haupt also addresses the implications of rising oil prices on the Australian economy, suggesting that while there may be benefits from exports, the overall impact on consumers is negative. He likens the increase in oil prices to a tax on consumption, which could further complicate the inflation battle already faced by the Reserve Bank of Australia.