After starting sharply lower this morning, the ASX 200 spent most of the day recovering and broke into positive territory for a brief moment this afternoon. But it was not to last, and the index ended up closing 0.23% lower at 8,633.2 points.

This tantalising day for ASX investors followed a much rougher night on Wall Street.

The Dow Jones Industrial Average Index (DJX: .DJI) was smashed, dropping a nasty 1.87%.

The tech-heavy Nasdaq Composite Index (NASDAQ: .IXIC) was hit even harder, falling 1.98%.

But let's get back to ASX shares now and take a look at what was going on amongst the various ASX sectors today.

Winners and losers

The post Here are the top 10 ASX 200 shares today appeared first on The Motley Fool Australia.

At the time of writing, the QBE share price is up 4.61% to $24.50.

Earlier today, the ASX 200 financial share climbed as high as $24.57. That's its highest level in more than a decade, last seen during the post-GFC recovery period in December 2009.

The move adds to what has already been a solid year for QBE shareholders. The stock is now up more than 20% in 2026.

So, what is driving the rally, and should investors still be interested after such a big run?

Why QBE shares are rising

QBE has been getting support from a stronger insurance earnings backdrop and higher premiums in its latest full-year numbers.

The company reported statutory net profit after tax (NPAT) of US$2.16 billion for FY 2025, up from US$1.78 billion a year earlier. Adjusted NPAT also rose to US$2.13 billion, while adjusted return on equity (ROE) came in at 19.8%.

Its combined operating ratio improved to 91.9%, from 93.1% in the prior year, pointing to a better underwriting result and tighter control of claims and costs.

QBE also lifted its full-year dividend to $1.09 per share, which was 25% higher than the prior year.

Based on the current share price, the stock is still offering a dividend yield of about 4.5%.

QBE holds its guidance

The more recent first-quarter update gave investors another reason to stay positive.

QBE said gross written premium growth was 11% compared with the prior corresponding period, or 7% on a constant currency basis.

The company also maintained its FY 2026 outlook, pointing to mid-single-digit gross written premium growth and a group combined operating ratio of around 92.5%.

That suggests management still expects the business to remain profitable. This is despite premium growth potentially slowing from the very strong figures seen across the industry in recent years.

Is it too late to buy?

QBE is in much better shape than it was a few years ago. Earnings have improved, the dividend has been lifted, and the first-quarter update showed the business has started 2026 well.

But investors are no longer buying the stock at a cheap-looking price. After a move to a decade-high, much of the good news is already reflected in the share price.

There are also risks to watch. UBS has previously raised concerns about a softer insurance pricing backdrop heading into 2027, particularly if premium rate growth loses pace more quickly than expected.

After today's push to decade highs, I'd be inclined to wait for a better entry point rather than chase the rally.

The post QBE shares just hit a decade high. Is it too late to buy? appeared first on The Motley Fool Australia.

The S&P/ASX 200 financial stock is down 1.25% to $23.27 at the time of writing.

That leaves QBE up around 17% in 2026, despite being flat over the past year.

Today's fall comes after UBS analysts raised concerns about a softer insurance pricing backdrop, which could become a bigger issue heading into 2027.

So, why's UBS taking a more cautious look at the stock?

Let's dive in.

What UBS is watching

According to The Australian, UBS analyst Kieren Chidgey has pointed to a warning from Lloyd's as a potential issue for QBE.

Lloyd's has reportedly signalled it may intervene in 2027 growth plans because the insurance market is softening faster than expected.

QBE has exposure to this because it writes about 10% of its premiums through Lloyd's.

Chidgey does not appear to be saying QBE is directly in the firing line. In fact, he said QBE is unlikely to be caught in the intervention "cross-hairs" because of its long underwriting record.

The bigger concern is what this says about margins.

UBS said the underlying margin trajectory heading into 2027 is softening, with Lloyd's expecting rate adequacy to fall below long-term hurdle levels for the first time since 2018.

Property and energy asset coverage were named as two areas where growth could slow.

Why investors are taking notice

Insurance stocks have benefited from several years of strong premium increases, which have helped offset claims inflation, weather costs, and other risks.

QBE has been part of that trend. The company delivered a solid FY 2025 result, with statutory net profit after tax (NPAT) rising 21% to US$2.16 billion. Its combined operating ratio improved to 91.9%, which was its strongest result in several years.

The combined operating ratio is a key insurance measure. A lower number means the insurer is keeping more premium revenue after paying claims and costs.

QBE also lifted its full-year dividend by 25% to $1.09 per share. It has also guided to mid-single-digit gross written premium growth in 2026 and a group combined operating ratio of around 92.5%.

But after a strong run-in premiums and margins, investors are being reminded that insurance pricing may not keep moving in the same direction forever. If pricing pressure builds into 2027, the market may start paying closer attention to whether QBE can protect its margins.

Why QBE still has support

QBE still has some support because it is a global insurer with a broad earnings base.

The company operates across 27 countries and has exposure to Australia, North America, Europe, and other international markets. This gives it more spread than a domestic insurer tied mostly to one economy or one insurance market.

The stock also still offers a dividend yield of about 4.65%, which may be another reason investors have been willing to stick with it this year.

The post UBS sounds the alarm on this ASX 200 financial stock after a big 2026 run appeared first on The Motley Fool Australia.

However, a combination of rising premium rates, improving underwriting margins, and disciplined capital management is creating an interesting investment backdrop for Insurance Australia Group Ltd (ASX: IAG) and QBE Insurance Group Ltd (ASX: QBE).

Why premiums keep rising

The driver behind both stocks is relatively straightforward.

Australia's insurance industry has spent the past three years repricing policies upward to recover from a period of elevated claims costs.

These costs were driven by natural catastrophes, supply chain inflation, and building cost increases that significantly exceeded what premiums had priced in.

That repricing cycle has not yet fully run its course.

IAG CEO Nick Hawkins confirmed at the company's half-year results that the business is forecasting high single-digit premium growth for the full year FY2026, with the Australian retail business delivering 14.4% top-line growth in the first half.

QBE similarly reported double-digit premium growth in Q1 2026 and maintained its optimistic full-year outlook.

Gross written premium grew 7% in constant currency across FY2025 driven by targeted expansion across its North American and International divisions.

Insurance Australia Group

IAG is Australia's largest general insurer, writing more than $14 billion in premium per annum across brands including NRMA, RACV, and CGU.

The first half of FY2026 was a noisy result on the surface, with statutory net profit after tax falling 35% to $505 million.

This was largely due to a one-off $174 million weather impact from the newly acquired RACQI portfolio before it was integrated into IAG's comprehensive reinsurance program in January 2026.

Stripping out those one-off items, the underlying picture was considerably more constructive.

Underlying insurance profit grew 7.6% to $804 million and the underlying insurance margin held at 15.1%, with management maintaining full-year FY2026 insurance profit guidance of $1.55 billion to $1.75 billion.

The board also announced an on-market share buyback of up to $200 million, reflecting a strong capital position that gives IAG the flexibility to keep returning cash to shareholders even while investing in the RACQI integration.

However, investors should note that IAG could face a claim in an upcoming Greensill court case, with the company provisioning $432 million for legal fees and claims handling while maintaining it expects no net exposure.

IAG shares have fallen in the last 12 months, which may have created a more attractive entry point for investors.

QBE

QBE offers a different but equally interesting angle on the rising premium theme.

As Australia's second largest international insurer, QBE operates across 27 countries, giving it a diversified premium base that is less exposed to Australian weather events than IAG.

QBE's FY2025 full-year result delivered a 21% lift in statutory net profit after tax to US$2.16 billion, comfortably ahead of market expectations, with its combined operating ratio improving to 91.9%, the strongest result in several years.

The company declared a full-year dividend of A$1.09 per share, a 25% lift on the prior year, and maintained a 50% payout ratio.

QBE is guiding to continued double-digit premium growth in 2026, with Q1 results confirming the momentum has carried into the new year.

Foolish takeaway

IAG and QBE are each navigating their own near-term complexities, whether that is weather events, legal uncertainty, or the pace of global premium moderation.

Nevertheless, the backdrop of rising premiums, improving underwriting discipline, and strong capital positions makes both stocks worth serious consideration for investors seeking quality financial exposure beyond the big four banks.

The post Why rising insurance premiums could make these 2 ASX insurers very attractive right now appeared first on The Motley Fool Australia.

Australia's benchmark index rose just over 1% during Tuesday's trading session.

This sparked fresh 52-week highs for several well-known ASX shares. 

Here's what experts are saying about these companies right now. 

Telstra Group Ltd (ASX: TLS)

Telstra shares rose another 2% yesterday to hit fresh 52-week highs of $5.52 per share. 

It has now climbed 13% year to date, as investors have pushed their chips in on defensive options like Telstra. 

It is considered a defensive stock because telecommunications services are essential, so customers tend to keep paying for mobile and internet plans even during economic downturns. 

Its large market share, recurring revenue, and relatively stable dividend payments also make earnings less volatile compared with more cyclical industries like mining or retail.

Following this recent share price rise, it appears that Telstra shares are close to fully valued. 

Catapult Wealth recently placed a hold recommendation on the company. 

Additionally, 13 analyst forecasts via TradingView indicate the current share price is 5% above fair value. 

QBE Insurance Group Ltd (ASX: QBE)

QBE shares rose 3% yesterday to hit a fresh 52-week high of $24 per share. 

It has now climbed 21% year to date. 

It has been one of the beneficiaries of rising interest rates. 

QBE is Australia's second-largest international insurer. 

Insurers can benefit from interest rate rises because they invest premiums and earn more when yields rise.

With that being said, it now appears that QBE shares are approaching fair value. 

Macquarie recently downgraded QBE shares to a hold rating with a $25.10 price target. 

This indicates just 4% upside from current levels. 

Superloop Ltd (ASX: SLC)

Superloop is an Australian telecommunications and internet infrastructure company that provides broadband and NBN services, fibre networks and enterprise connectivity. 

Yesterday, its share price climbed 1.4% to hit a new 52 week high of $3.56. 

It has now risen almost 40% year to date. 

The share price rise has been driven by positive growth for the company. 

It recently reported a 21.2% increase in customers and a 23.3% lift in revenue compared to the prior year.

Despite these positive metrics, the company appears close to full valuation right now. 

Nathan Lodge from Securities Vault recently placed a hold rating on this ASX telecommunications share.

Furthermore, eight analyst ratings via TradingView have an average 12 month price target of $3.50 on Superloop shares. 

The post Are Telstra and these ASX shares a buy, hold or sell after hitting new yearly highs? appeared first on The Motley Fool Australia.

I won't leave you hanging.

While higher costs and rates will impact market dynamics, my answer remains a resounding yes.

But you may wish to target a different basket of ASX shares than you might buy in a falling rate environment.

We'll look at a few you may want to consider adding to your portfolio below.

But first…

What on earth is happening with interest rates in Australia?

Inflation down under was already ticking higher in the latter months of 2025 and into 2026 before the onset of the Iran war at the end of February.

That resurgent inflation was partially spurred by greater capacity pressures. But with energy costs rocketing amid the Middle East conflict, cost of living pressures are likely to ramp significantly higher before we see any relief.

In an effort to get ahead of the curve, this saw the RBA boost Australia's official interest rate by another 0.25% on Tuesday. This third consecutive hike from the central bank sees the official interest rate at 4.35%. That's back at its 2024 peak, and it matches the highest rate levels since 2011.

While many ASX shares initially sank on the RBA's afternoon announcement on Tuesday, the All Ordinaries Index (ASX: XAO) clawed back those losses to close the day around where it was before the rate hike news hit the wires.

Buying ASX shares in a higher interest rate environment

Commenting on the RBA's latest interest rate increase, and how investors should respond, Josh Gilbert, lead analyst for APAC at eToro, said:

The takeaway for portfolios is that boring can be brilliant in this environment. Focus on quality balance sheets and pricing power, because companies that can pass costs through without losing volume are the ones that can hold up best with the current macro backdrop.

One ASX share that looks to fit this bill is Transurban Group (ASX: TCL).

While the toll road owner and operator won't be immune to the impacts of higher energy prices on its traffic volumes, Transurban is able to increase prices to match inflation across many of its toll roads. Indeed, the company reported that more than 90% of its revenue is either CPI-linked or with fixed escalations.

Other ASX shares that could perform well amid rising inflation and rates are insurance stocks.

Companies like QBE Insurance Group Ltd (ASX: QBE) and Suncorp Group Ltd (ASX: SUN) generally hold a sizeable pool of cash and bonds, which should offer an income boost amid higher interest rates.

And don't lose track of the Aussie dollar.

With Australian interest rates outpacing those in the United States, the Aussie dollar hit four-year highs this week, recently trading for 72.4 US cents. That's up from 64.3 US cents a year ago.

This big shakeup in currency exchange rates should tend to favour importers over exporters. Imported goods will be cheaper in Aussie dollar terms while exported goods will be more expensive for buyers paying in US dollars.

The post Should you still buy ASX shares amid fast-rising inflation and interest rates? appeared first on The Motley Fool Australia.

Over the past 12 months, QBE shares have risen around 2.6%, trailing the S&P/ASX 200 Index (ASX: XJO), which gained roughly 8% over the same period.

So, what exactly did the insurance giant report?

Strong premium growth

QBE is one of Australia's largest insurers, operating across Australia, North America, Europe, and Asia. The company provides a broad range of insurance products spanning commercial, crop, property, and specialty insurance. One of QBE's key strengths is its global diversification. It generates earnings across multiple markets and insurance categories, helping reduce reliance on any single region or business line.

On Friday, the ASX financial stock reported strong premium growth for the first quarter of 2026. Gross written premium (GWP) increased 11%, or 7% on a constant currency basis. Growth was particularly strong in targeted segments, including North America Crop and selected portfolios within its International division.

QBE also continued benefiting from supportive insurance pricing conditions. Group premium rates increased around 2% during the quarter, although management flagged rising competition in commercial property insurance and the Lloyd's market.

Storms Northern Hemisphere

At first glance, the update from the ASX financial stock looked solid.

But investors appeared more focused on claims costs and broader market risks. QBE revealed catastrophe claims had reached approximately $300 million during the first four months of the year. These costs were driven largely by multiple weather events in Australia and storms across the Northern Hemisphere.

The company also disclosed limited exposure to the Middle East conflict, estimating net claims of roughly $60 million, which were included within catastrophe costs.

While those figures remain manageable for a company of QBE's scale, they highlight the growing volatility insurers face from extreme weather events and geopolitical instability. That may help explain the weaker share price reaction despite strong premium growth.

What next for the ASX financial stock?

Looking ahead, management maintained its full-year 2026 guidance.

QBE still expects mid-single-digit gross written premium growth on a constant currency basis and a Group combined operating ratio of around 92.5%.

The ASX financial stock also reaffirmed its medium-term targets, including adjusted return on equity above 15% and ongoing premium growth. Management said the business remains focused on disciplined underwriting, portfolio management, and navigating dynamic global insurance conditions.

Investors will get a closer look at earnings momentum when QBE releases its first-half 2026 results on 14 August.

Foolish Takeaway

For now, the market appears to be balancing two competing forces: strong operating performance on one side, and rising catastrophe risks and competitive pressures on the other.

That combination may explain why QBE shares slipped despite what looked like a solid quarterly update overall.

The post Why is this ASX financial stock dropping despite solid results? appeared first on The Motley Fool Australia.

Four ASX shares that are falling more than most today are listed below. Here's why they are dropping:

Macquarie Group Ltd (ASX: MQG)

The Macquarie share price is down 1.5% to $238.24. This follows the release of the investment bank's full-year results, which have been overshadowed by a market selloff. Macquarie reported net profit after tax of $4.85 billion for FY 2026, which is up 30% on FY 2025. This was driven by a very strong second half, with net profit coming in at $3.19 billion. This was a record half-year result and represented a 93% increase on the first half.

QBE Insurance Group Ltd (ASX: QBE)

The QBE Insurance share price is down 1.5% to $22.28. Investors have been selling the insurance giant's shares following the release of its quarterly update. QBE reported gross written premium (GWP) growth of 11% year-on-year. However, taking some of the shine off the result was its net cost of catastrophe claims. It was approximately $300 million for January to April. This reflects multiple events in Australia and storms in the Northern Hemisphere.

Tabcorp Holdings Ltd (ASX: TAH)

The Tabcorp share price is down a further 10% to 79 cents. Investors have been selling this gambling company's shares amid news that it has become the subject of an AUSTRAC enforcement investigation. This relates to anti-money laundering and counter-terrorism financing compliance. AUSTRAC has stated that the investigation is at an early stage and its approach will be determined once sufficient evidence has been collected and assessed. Tabcorp's CEO, Gillon McLachlan, said: "I am committed to leading a compliant and safe company that understands its risk obligations. Uplifting our risk capability has been an ongoing part of the Company's transformation and we will work constructively with AUSTRAC through this process."

Westpac Banking Corp (ASX: WBC)

The Westpac share price is down 4% to $37.70. This has been driven by the banking giant's shares going ex-dividend this morning. This month, the big four bank released its half-year results and declared a 77 cents per share fully franked dividend. Eligible shareholders can now look forward to receiving this next month on 26 June.

The post Why Macquarie, QBE, Tabcorp, and Westpac shares are dropping today appeared first on The Motley Fool Australia.

Two of the blue-chip ASX shares are outpacing the 1.6% losses posted by the S&P/ASX 200 Index (ASX: XJO) as we head into the Friday lunch hour, while one is trailing that performance.

Here's what's happening.

Macquarie shares slide following Thursday's record close

After notching a new all-time closing high yesterday, Macquarie shares are down 2.2% at the time of writing, trading for $236.45 apiece.

Investors are pressuring the ASX 200 diversified financial stock despite the company reporting some strong full-year FY 2026 results.

For the 12 months to 31 March, Macquarie achieved growth across all of its operating groups.

This saw the company post a 30% year-on-year increase in net profit after tax (NPAT) to $4.85 billion. The second half of the financial year was particularly strong, with Macquarie reporting H2 NPAT of $3.19 billion, up 93% from the first half.

On the passive income front, management declared a final partly franked dividend of $4.20 per share, up 7.7% from last year's final dividend.

Commenting on the results that have yet to boost Macquarie shares today, CEO Shemara Wikramanayake said:

Each of our businesses used its specialist expertise in navigating the current environment, identifying opportunities that support long-term growth and delivering positive outcomes for our clients and communities

Block shares charge higher on rising profits

Also grabbing headlines and bucking the broader market sell-down today, Block shares are up 5.1% at the time of writing, changing hands for $103.38 each.

Investors are bidding up the ASX 200 buy now, pay later (BNPL) company, which acquired Afterpay in 2022, following the release of its first-quarter update (Q1 2026).

Highlights for the first quarter included a 5% year-on-year increase in net revenue to US$6.06 billion. And Block's adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) hit a record US$1.01 billion for the quarter.

On the bottom line, Block's gross profit was up 27% from Q1 2025 to US$2.91 billion.

"We continued to deliver strong financial performance in the first quarter as AI became more central to how Block operates and what we build for customers," Block CEO Jack Dorsey said.

Which brings us to…

QBE shares slip on Q1 update

Joining Block and Macquarie shares in turning heads today, QBE also released its first-quarter update this morning.

Shares in the ASX 200 insurance giant are modestly outpacing the losses on the benchmark index today, down 1.4% at $22.33 apiece.

Highlights for the quarter include an 11% year-on-year increase in QBE's gross written premium (GWP), or 7% on a constant currency basis.

The insurer reported total funds under management of $36.1 billion at the end of the quarter.

And with interest rates on the rise, QBE's core fixed income yield increased to 4.1% over Q1. That's up from an average of 3.7% achieved in FY 2025.

The post Why QBE, Block and Macquarie shares are grabbing headlines on Friday appeared first on The Motley Fool Australia.

What did QBE Insurance Group report?

• Gross written premium (GWP) up 11% year-on-year; 7% on a constant currency basis
• Ex-rate GWP growth of 6%, with strength in North America Crop and International portfolios
• Net cost of catastrophe claims at approximately $300 million for January to April 2026
• Investment income of about $500 million in the first four months of 2026
• Core fixed income yield increased to 4.1% at 1Q26 (from 3.7% at FY25)
• Total funds under management of $36.1 billion at 1Q26

What else do investors need to know?

QBE reported that premium growth was particularly strong in targeted areas, including North America Crop and select portfolios in its International division. Market conditions remain supportive, with Group premium rate increases of around 2% in the quarter, although competitive pressures were flagged in commercial property and at Lloyd's.

On the claims front, QBE noted a net cost of catastrophe claims of roughly $300 million during the first four months of the year, primarily due to multiple events in Australia and storms in the Northern Hemisphere. Direct underwriting exposure to the Middle East conflict remains limited, with estimated net claims around $60 million included in catastrophe costs.

What did QBE Insurance Group management say?

QBE noted:

We are pleased with performance through the start of 2026, underpinned by targeted premium growth alongside resilient underwriting and investment management. We expect mid-single-digit GWP growth with a Group combined operating ratio of ~92.5% in FY26 and remain confident in sustaining strong performance over the medium-term.

What's next for QBE Insurance Group?

Looking ahead, QBE reiterated its full-year 2026 outlook, expecting mid-single-digit gross written premium growth on a constant currency basis, and a Group combined operating ratio of around 92.5%. Over the medium term, management aims for an adjusted return on equity above 15% and ongoing GWP growth.

The company will release its 1H26 results on Friday 14 August 2026. QBE says it remains focused on disciplined underwriting, portfolio management, and navigating dynamic global insurance markets.

QBE Insurance Group share price snapshot

Over the past 12 months QBE shares have risen 4%, trailing the S&P/ASX 200 Index (ASX: XJO) which has risen 8% over the same period.

View Original Announcement

The post QBE Insurance Group reports Q1 2026 earnings appeared first on The Motley Fool Australia.

Will the market be able to build on this on Friday and end the week on a high? Here are five things to watch:

ASX 200 expected to sink

The Australian share market looks set to sink on Friday following a poor night of trade in the United States. According to the latest SPI futures, the ASX 200 is expected to open 136 points or 1.5% lower this morning. On Wall Street, the Dow Jones was down 0.65%, the S&P 500 fell 0.4%, and the Nasdaq edged 0.1% lower.

Oil prices mixed

ASX 200 energy shares including Santos Ltd (ASX: STO) and Woodside Energy Group Ltd (ASX: WDS) will be on watch on Friday after a mixed night for oil prices. According to Bloomberg, the WTI crude oil price is up 0.9% to US$95.91 a barrel and the Brent crude oil price is down 0.1% to US$101.11 a barrel. Traders appear to be waiting to hear if the US and Iran sign a peace deal.

Major ASX 200 share updates

A number of ASX 200 shares will be on watch when they release their latest updates on Friday. Among the companies that are due to release updates are investment bank Macquarie Group Ltd (ASX: MQG), property listings company REA Group Ltd (ASX: REA), insurer QBE Insurance Group Ltd (ASX: QBE), and payments leader Block Inc. (ASX: XYZ).

Gold price rises

ASX 200 gold shares including Evolution Mining Ltd (ASX: EVN) and Newmont Corporation (ASX: NEM) could have a good finish to the week after the gold price pushed higher overnight. According to CNBC, the gold futures price is up 0.65% to US$4,724.1 an ounce. This has been driven by optimism that interest rate hikes will be avoided if a US-Iran peace deal is signed.

TechnologyOne shares upgraded

TechnologyOne Ltd (ASX: TNE) shares are undervalued according to analysts at Bell Potter. This morning, the broker has upgraded the enterprise software provider's shares to a buy rating with an improved price target of $31.75. It said: "Technology One announced a new contract with James Cook University (JCU) last month which in our view is significant from a product perspective. […] On the back of this contract win and clear demonstration of "the power of Plus" we have modestly increased our ARR forecasts in each period."

The post 5 things to watch on the ASX 200 on Friday appeared first on The Motley Fool Australia.

As reported by Bernd Struben, Australia's official interest rate is now back at its post-pandemic 2024 highs.

November 2011 was the last time rates were higher than the current level. 

The decision from the RBA was influenced by inflation and the ongoing conflict in the Middle East. 

The RBA said:

In addition, the conflict in the Middle East has resulted in sharply higher fuel and related commodity prices, which are already adding to inflation. There are early signs that many firms experiencing cost pressures are looking to increase prices of their goods and services. Short-term measures of inflation expectations have also risen.

Why this matters for investors 

As a quick refresher, the RBA cash rate acts as a benchmark for the Australian economy. 

When the cash rate rises, borrowing becomes more expensive for businesses and consumers. 

This can slow economic activity and reduce company profits, often putting downward pressure on share prices. 

On the flip side, when the cash rate falls, borrowing is cheaper. 

This can stimulate spending and investment, which can boost corporate earnings and generally support higher share prices. 

In this way, changes in the cash rate influence both company fundamentals and investor behaviour across the ASX.

For the everyday Aussie, changes in the cash rate affect how much they pay on mortgages, loans, and credit cards. 

This has a direct influence on spending power and the overall cost of living.

But it isn't bad news for every ASX-listed company when interest rates are high. 

Here are some options for investors looking for companies that could stand to benefit from a high-interest-rate environment. 

Big banks

Banks make much of their profit from the difference between:

• the interest they charge borrowers (home loans, business loans), and
• the interest they pay depositors and wholesale lenders

This difference is called the net interest margin (NIM).

When the Reserve Bank of Australia raises rates, banks usually increase mortgage and business lending rates fairly quickly, but deposit rates often rise more slowly.

That can widen margins and increase profits.

This (not always) can mean bank shares like the big four can benefit in a high-interest-rate environment. 

Investors may choose to target these banks individually. However, another option is to target an ASX ETF that includes all the big four bank shares. 

One such option is the VanEck Australian Banks ETF (ASX: MVB). 

Insurance companies

Another subsector of the ASX that can outperform in high-rate environments is insurance shares. 

These companies can benefit from interest rate rises because they invest premiums and earn more when yields rise. 

Some options include: 

• QBE Insurance Group Ltd (ASX: QBE)
• Suncorp Group Ltd (ASX: SUN)
• Insurance Australia Group Ltd (ASX: IAG)

The post Where to invest with interest rates rising appeared first on The Motley Fool Australia.

The world is waiting for a fresh round of negotiations between the US and Iran to begin, as the global oil shock continues.

Meanwhile, the International Monetary Fund has warned of a global recession given the long-tail impact of energy supply shocks.

Amid this ongoing turmoil, brokers have reduced their ratings on six ASX 200 shares this week.

Let's take a look.

Macquarie Group Ltd (ASX: MQG)

The Macquarie share price is $231.83, up 0.5% today.

Over the past month, this ASX 200 bank share has lifted substantially, up 19%.

UBS downgraded Macquarie shares to a hold rating yesterday.

The broker considers the stock almost fully valued, given its 12-month price target of $235.

4DMedical Ltd (ASX: 4DX)

The 4DMedical share price is 7% lower on Friday at $4.91.

This ASX 200 healthcare share has skyrocketed 1,650% over 12 months.

Jefferies downgraded 4DMedical shares to a hold rating yesterday.

However, the broker believes this stock's value can continue to grow.

Its 12-month price target is $5.90, implying a potential 17% capital gain ahead.

QBE Insurance Group Ltd (ASX: QBE)

The QBE share price is $22.39, up 0.09% today.

The ASX 200 insurance share has lifted 13% in the year to date (YTD).

Macquarie downgraded QBE shares to a hold rating with a $25.10 price target on Friday.

Sandfire Resources Ltd (ASX: SFR)

The Sandfire Resources share price is $17.26, up 0.2% today.

The ASX 200 copper share has experienced a remarkable run over the past 12 months, rising 73%.

The copper commodity price climbed 42% in 2025 due to rising demand amid the green energy transition.

Sandfire Resources shares reached an all-time high of $21.75 per share in January.

Copper was sold off alongside other metals in February but has rebounded strongly since mid-March.

UBS downgraded Sandfire Resources shares to a sell rating today.

The broker reduced its 12-month price target from $17.70 to $16.75.

TechnologyOne Ltd (ASX: TNE)

The TechnologyOne share price is $28.64, down 3.8% today.

TechnologyOne lost a quarter of its valuation amid the tech wreck that began in 1H FY26.

The ASX 200 tech share is down 26% over the past six months but has rallied 4.5% this month amid a sector turnaround.

Morgans downgraded TechnologyOne shares to a hold rating today.

The broker has a price target of $31.20, implying a potential 9% upside ahead.

Reece Ltd (ASX: REH)

The Reece share price is $13.63, up 1% today.

This ASX 200 industrial share is down 12% year over year, but has lifted 13.6% over the past six months.

Morgans downgraded Reece shares to a hold rating today.

The broker reduced its 12-month price target from $17.70 to $14.10.

This still suggests a near-5% upside ahead.

The post 6 ASX 200 shares downgraded by brokers this week appeared first on The Motley Fool Australia.

The market was closed on Monday as Australians celebrated Easter.

The S&P/ASX 200 Index (ASX: XJO) ripped 4.41% to 8,960.6 points over the four trading days.

The remarkable recovery followed news of a two-week ceasefire deal between the US and Iran.

ASX investors hope this will pave the way toward an end to the war in Iran.

Investors continued to buy the dip last week following the steep sell-off over the first three weeks of March.

ASX 200 shares fell 9.1% between 2 March and 23 March before a rebound began, with the index now up 7.1% since then.

James Gerrish from Shaw and Partners says "war fear" in the market is fading but "we're not out of the woods yet".

Businesses across multiple sectors are still assessing the impact of the oil shock, which is likely to reverberate for months to come.

Let's recap the week.

Financial shares led the ASX sectors last week

The ASX 200 financial sector incorporates bank shares, insurers, fund managers, financial services providers, and more.

Let's take a look at how some of these ASX financial stocks performed last week.

The Commonwealth Bank of Australia (ASX: CBA) share price rose 5.98% to close at $183.38 on Friday.

ANZ Group Holdings Ltd (ASX: ANZ) shares lifted 6.31% to $38.84.

Westpac Banking Corp (ASX: WBC) shares ascended 6.87% to $42.77.

The National Australia Bank Ltd (ASX: NAB) share price spiked 9.06% to $45.36.

The Macquarie Group Ltd (ASX: MQG) share price soared 9.3% to finish the week at $225.

Among the ASX 200 investment companies and fund managers, GQG Partners Inc (ASX: GQG) shares fell 0.28% to $1.78.

Magellan Financial Group Ltd (ASX: MFG) shares fell 0.84% to $9.45 amid a shareholder vote on the Barrenjoey merger on Friday.

Magellan announced it had received more than 90% approval from shareholders.

Washington H. Soul Pattinson and Co Ltd (ASX: SOL) shares lifted 3.92% to $42.98.

Among the financial services providers, AMP Ltd (ASX: AMP) shares lifted 6.06% to $1.37.

The Challenger Ltd (ASX: CGF) share price lost 2.6% to close at $8.07 on Friday.

ASX 200 buy now, pay later share Zip Co Ltd (ASX: ZIP) ripped 16.5% to $1.85.

Among the insurers, Insurance Australia Group Ltd (ASX: IAG) shares fell 1.03% to $7.21.

Medibank Private Ltd (ASX: MPL) shares lifted 1.92% to $4.52.

The QBE Insurance Group Ltd (ASX: QBE) share price ascended 4.13% to $22.46.

ASX 200 market sector snapshot

Here's how the 11 market sectors stacked up last week, according to CommSec data.

Over the four trading days:

Looking for inspiration after the March sell-off?

Check out these 7 ASX 200 shares just upgraded to strong buy consensus ratings after last month's turmoil.

The post ASX 200 shares rip with financials leading a remarkable recovery last week appeared first on The Motley Fool Australia.

Shares in the S&P/ASX 200 Index (ASX: XJO) insurance giant closed yesterday trading for $21.92. In late morning trade on Wednesday, shares are swapping hands for $22.18 apiece, up 1.2%.

For some context, the ASX 200 is up 2.7% at this same time amid renewed hopes of a deescalation in the Iran war.

Taking a step back, QBE has strongly outperformed the benchmark index in 2026.

Since market close on 31 December, QBE shares are up 11.5% compared to the 2.7% year to date gain posted by the ASX 200.

QBE also trades on a partly franked trailing dividend yield of 4.9%.

And looking ahead, Investor Pulse's Mark Elzayed expects more outperformance from the Aussie insurer (courtesy of The Bull).

Here's why.

Should you buy QBE shares today?

"Elevated premium rates and higher interest yields combine to drive earnings momentum," said Elzayed, citing the first reason he's bullish on the stock.

He noted:

Improvement was clear in its full year 2025 results released in February. Net profit after tax of US$2.157 billion was up from US$1.779 billion in the prior corresponding period. Premium growth remained solid, with gross written premiums increasing 7% to $US23.9 billion, driven by rate increases across North America and international markets.

As for the second reason you might want to buy QBE shares today, Elzayed said, "At the same time, catastrophe costs were well below expectations."

Which leads to the third reason, namely the company's growing passive income appeal.

"This combination of underwriting strength and cost control supported a 25% increase in the full year dividend to $1.09 a share," Elzayed said.

QBE's passive income payouts in 2025 represented a full year dividend payout ratio of 50%.

"Improved quality of earnings and reduced volatility adds to QBE's appeal," Elzayed concluded.

What's the latest from the ASX 200 insurer?

QBE released its full calendar year 2025 results on 20 February.

Atop the strong growth metrics Elzayed mentioned up top, the company also achieved a 17% year-on-year increase in its funds under management to US$35.8 billion.

And the company's total investment income of $1.63 billion equated to a return of 4.9%.

"QBE delivered strong performance in 2025, exceeding our financial plan for the year," QBE CEO Andrew Horton said. "Profitability remains attractive across the majority of lines and the year ahead appears constructive for further growth, and a continuation of solid returns."

QBE shares closed up 7.1% on the day of the results release.

The post 3 compelling reasons to buy QBE shares today appeared first on The Motley Fool Australia.

Well, if you are, let's see what analysts are saying about the popular shares in this article, courtesy of The Bull.

Are they buys, holds, or sells? Let's find out:

CSL Ltd (ASX: CSL)

This biotechnology giant's shares have fallen heavily over the past 12 months, but Morgans isn't in a rush to buy them.

This week, the broker has put a hold rating on CSL shares. It appears to be waiting for its performance to improve before recommending it as a buy. It said:

This biotechnology giant has a strong research and development pipeline and a successful track record in launching new products. Its first half result in fiscal year 2026 was softer than expected, with net profit after tax and amortisation declining 7 per cent.

However, the company's outlook appears supported through a combination of cost-outs, marketing initiatives and diminishing headwinds, which are all reinforced by the board's urgency around operational delivery. This provides long term appeal for investors already holding the stock.

Pro Medicus Ltd (ASX: PME)

The team at Fairmont Equities has named this health imaging technology provider's shares as a sell this week.

It believes that the rotation out of technology has not finished, which could mean further declines are on the cards. It said:

The company provides medical imaging software and services to hospitals and healthcare groups across the world. We remain negative on the technology sector as higher interest rates, continuing market volatility and increasing uncertainty leaves investors questioning the high multiples that companies, such as Pro Medicus, trade on. As we saw in the early 2000s, technology stocks can lose a significant amount of value before they become attractive again.

This rotation out of technology stocks often sees investors flocking to hard assets, such as mining company shares. This is what we're seeing in sharemarkets at the moment, and this dynamic has further to go, in my view. PME shares have fallen from $330.48 on July 17, 2025 to trade at $120.17 on April 2, 2026.

QBE Insurance Group Ltd (ASX: QBE)

Over at Investor Pulse, it has named this insurance giant's shares as a buy this week.

It has been pleased with QBE's strong premium rates and higher interest yields. Looking ahead, it appears to believe the positive form can continue. It said:

Elevated premium rates and higher interest yields combine to drive earnings momentum. Improvement was clear in its full year 2025 results released in February. Net profit after tax of $US2.157 billion was up from $US1.779 billion in the prior corresponding period. Premium growth remained solid, with gross written premiums increasing 7 per cent to $US23.9 billion, driven by rate increases across North America and international markets.

At the same time, catastrophe costs were well below expectations. This combination of underwriting strength and cost control supported a 25 per cent increase in the full year dividend to $A1.09 a share. Improved quality of earnings and reduced volatility adds to QBE's appeal.

The post Buy, hold, sell: CSL, QBE, and Pro Medicus shares appeared first on The Motley Fool Australia.

To narrow things down, let's see what analysts are saying about three popular shares, courtesy of The Bull. Here's what they are recommending:

Commonwealth Bank of Australia (ASX: CBA)

The team at Medallion is siding with the majority of brokers by declaring CBA shares as sell.

While acknowledging that CBA is the highest-quality Australian bank, it feels that its valuation is stretched.

Medallion also highlights that its shares are trading at a significant premium to peers despite having similar earnings growth outlook. It said:

CBA remains the highest quality franchise among Australia's major banks, but the valuation now looks stretched. The stock trades on a price-to-earnings multiple well above its peers despite similar earnings growth prospects. The recent annual dividend yield around 3 per cent is modest compared with other income opportunities.

With credit growth slowing and net interest margins stabilising, we believe earnings momentum is unlikely to justify such a premium valuation. After a strong share price run, investors may want to consider taking profits and reallocating capital to more attractively valued opportunities.

QBE Insurance Group Ltd (ASX: QBE)

Over at DP Wealth Advisory, its analysts have named this insurance giant as a hold this week.

It acknowledges that QBE is a well-managed company, but has concerns over challenging trading conditions. It explains:

QBE is a well managed global business with a strong return on equity and improving profit margins. Adjusted return on equity was 19.8 per cent in full year 2025 compared to 18.2 per cent in the prior corresponding period. Gross written premiums grew 7 per cent. Insurance companies rely on investment returns, which is challenging in a volatile global market. We retain a hold recommendation given QBE is trading near a 12 month consensus valuation.

Qantas Airways Ltd (ASX: QAN)

Finally, due to the prospect of jet fuel prices steering higher for longer, the team at DP Advisory is staying clear of Qantas shares for the time being.

As a result, it has named the Flying Kangaroo as a sell this week and believes there are better options out there for investors. It said:

Qantas is a well managed domestic and international airline, holding a 70 per cent market share in Australia. The shares were trading at $10.65 on February 25, a day prior to the company posting its first half year result in fiscal year 2026. The stock was trading at $8.46 on March 19. Qantas announced on March 13, 2026 that it had settled a class action for $105 million regarding flight credits during COVID-19. The company has hedged jet fuel supply prices in the shorter term, but I'm concerned about the impact of possibly higher crude oil prices over the longer term.

I'm also mindful of the expense involved in Qantas upgrading its airline fleet after years of under investment by previous management as well as COVID-19. Qantas has a high fixed cost base. In my view, it's a cyclical stock due to its reliance on consumer and business sentiment. Other stocks appeal more at this point.

The post Buy, hold, sell: CBA, QBE, and Qantas shares appeared first on The Motley Fool Australia.

The RBA announced an increase of the cash rate target by 0.25%, bringing Australia's official interest rate to 4.10%.

The decision was largely due to rising inflation according to the board. 

Australia's benchmark index, the S&P/ASX 200 Index (ASX: XJO) crawled roughly 0.3% higher in Tuesday's trade following the news. 

How does the cash rate impact ASX shares?

The RBA Cash Rate plays a central role in shaping the performance of ASX-listed shares. 

When the cash rate rises, borrowing becomes more expensive for businesses and consumers, which can slow economic activity and reduce company profits, often putting downward pressure on share prices. 

Higher rates also make fixed-income investments like bonds more attractive relative to equities, leading some investors to shift money out of shares. 

Conversely, when the cash rate falls, borrowing is cheaper, encouraging spending and investment, which can boost corporate earnings and generally support higher share prices. 

In this way, changes in the cash rate influence both company fundamentals and investor behavior across the ASX.

For the everyday consumer, changes in the cash rate affect how much they pay on mortgages, loans, and credit cards, influencing their spending power and overall cost of living.

While past performance does not guarantee future returns, here are ASX shares that may benefit from a higher rate environment. 

Insurance companies

Insurers can benefit from interest rate rises because they invest premiums and earn more when yields rise. 

This could be ideal for ASX shares like: 

• QBE Insurance Group Ltd (ASX: QBE)
• Suncorp Group Ltd (ASX: SUN)
• Insurance Australia Group Ltd (ASX: IAG)

All three saw share price rises yesterday on the back of the RBA announcement. 

In simple terms, higher interest rates = higher investment returns on premiums, which directly lifts insurers' earnings.

QBE and IAG have also attracted positive analysis from brokers recently, indicating it could outperform markets in the short-term. 

Financial and cash-sensitive businesses

Two other ASX shares that could outperform due to rising interest rates are: 

• Macquarie Group Ltd (ASX: MQG)
• Computershare Ltd (ASX: CPU)

These companies directly earn more income from cash balances or client funds. 

For example, Computershare's profits can rise significantly as interest earned on client balances increases.

Meanwhile, Macquarie Group can benefit from higher interest rates because it earns more income on its large pools of client funds and investments, while also profiting from increased margins in its lending and financial services businesses.

The company also has a long track record of generating strong profits across market cycles.

The post 5 ASX shares that could benefit from rising interest rates appeared first on The Motley Fool Australia.

This sees shares in the S&P/ASX 200 Index (ASX: XJO) insurance giant up 3.9% in 2026, outpacing the 1.8% year to date loss posted by the benchmark index.

Longer-term, QBE shares are down 0.8% over 12 months. Though that's doesn't include the two partly franked dividends totalling $1.048 a share that the insurer paid (or shortly will pay) eligible stockholders over this time. QBE trades on a partly franked trailing dividend yield of 5.1%.

And looking ahead, Baker Young's Toby Grimm believes QBE represents appealing value today (courtesy of The Bull).

Here's why.

Should you buy QBE shares today?

"QBE offers attractive value at this stage of the cycle," Grimm said.

The first reason he's bullish on QBE shares is the company's expectation beating results in calendar year 2025.

"In February, the global insurer reported better-than-forecast earnings growth of 23% in full year 2025, driven by a solid 7% increase in policy sales and relatively low claims rates," he said.

As for the second reason he has a buy rating on the ASX 200 insurer, Grimm said, "With favourable operating conditions likely to persist into full year 2026, we see compelling financial sector value at around 11.5 times projected earnings and a dividend yield of 5%."

Then there's the diversified exposure that QBE shares offer.

According to Grimm:

Insurance is inherently risky and industry feedback suggests competition is increasing, which may limit further premium increases in coming years. However, QBE offers unparalleled geographical diversification among Australian insurers, which helps reduce earnings volatility.

Grimm concluded, "We're comfortable accumulating the stock at current levels as an attractively valued, well diversified financial exposure."

What's the latest from the ASX 200 insurance stock?

QBE released its full year 2025 results on 20 February.

Atop the 23% year-on-year earnings growth that Grimm mentioned above, QBE achieved a 21% increase in statutory net profit after tax (NPAT) to US$2.16 billion.

That saw management boost the final dividend by 23.8% from the 2024 final payout to 78 cents a share.

"QBE delivered strong performance in 2025, exceeding our financial plan for the year," QBE CEO Andrew Horton said on the day.

Looking ahead, Horton added, "Profitability remains attractive across the majority of lines and the year ahead appears constructive for further growth, and a continuation of solid returns."

As for that increasing competition that Grimm mentioned, Horton said, "While competition has increased in some classes, QBE remains committed to our long-term strategy, underwriting discipline, and sustaining strong performance."

QBE shares closed up 7.1% on the day of the 2025 results release.

The post 3 reasons to buy QBE shares today appeared first on The Motley Fool Australia.

To narrow things down, let's see what analysts are saying about three popular shares, courtesy of The Bull. Here's what they are recommending:

Life360 Inc. (ASX: 360)

Despite recent share price weakness, the team at Baker Young only rates Life360 shares as a hold.

Commenting on the family safety technology company, the broker said:

Life360 is a leading family safety and location sharing platform operating across the US, UK and Australia. The company delivered better-than-expected full year results in 2025, highlighted by subscription revenue increasing 33 per cent. Hardware remains an important long term growth option, as it helps lock users into paid subscriptions.

We believe the magnitude of the recent share price decline has been excessive given the strength across most of Life360's core subscription business. Accordingly, we remain comfortable holding this high quality, fast growing and profitable company at current levels.

Magellan Financial Group Ltd (ASX: MFG)

Another ASX share that Baker Young has given its verdict on is fund manager Magellan.

It highlights that Magellan's shares have rallied strongly since announcing plans to merge with Barrenjoey.

The broker feels this has led to an excessive valuation and has named the company as a sell this week. It explains:

Shares in this funds management firm have rallied following news it will merge with boutique investment bank Barrenjoey Capital Partners. While we recognise the strategic rationale of diversifying away from the increasingly challenging funds management industry, and view Barrenjoey as an attractive and growing participant in Australian capital markets, we question the valuation implied by the transaction. The deal effectively values the business around 15 times underlying earnings.

Also, the transaction involves issuing MFG shares at $8.45 each to partially fund the acquisition, creating meaningful dilution for existing shareholders. Given the strong share price reaction to the announcement, we would consider taking advantage of the rally to exit positions.

QBE Insurance Group Ltd (ASX: QBE)

One ASX share that Baker Young is positive on is QBE Insurance. It has named the insurance giant as a buy this week.

The broker sees value in QBE's shares at current levels and highlights its attractive forecast dividend yield. It said:

QBE offers attractive value at this stage of the cycle. In February, the global insurer reported better-than-forecast earnings growth of 23 per cent in full year 2025, driven by a solid 7 per cent increase in policy sales and relatively low claims rates. With favourable operating conditions likely to persist into full year 2026, we see compelling financial sector value at around 11.5 times projected earnings and a dividend yield of 5 per cent.

Insurance is inherently risky and industry feedback suggests competition is increasing, which may limit further premium increases in coming years. However, QBE offers unparalleled geographical diversification among Australian insurers, which helps reduce earnings volatility. We're comfortable accumulating the stock at current levels as an attractively valued, well diversified financial exposure.

The post Buy, hold, sell: Life360, Magellan, and QBE shares appeared first on The Motley Fool Australia.