ASX shares have just been handed a piece of economic news that may finally come as a relief.

The Australian economy grew 0.4% in the June quarter.

Annual growth came in at 2.1%.

Both figures were above what economists expected.

Stronger growth is good for company earnings and yet somewhat awkward for anyone hoping interest rates stay where they are.

What the GDP numbers actually said

The details are important here.

Household spending rose 0.4% in the June quarter, which is steady without being strong.

The household saving ratio edged up to 6.5% from 6.4%.

GDP per capita increased 0.8% across the 2025-26 financial year.

Grace Kim, the ABS head of national accounts, was measured about the result.

Economic growth remained subdued in the June quarter as households continued to behave cautiously. While increased spending and business investment occurred in pockets of the economy, imports supported much of the growth, moderating its contribution to overall GDP growth.

Why stronger growth is bad news for some ASX shares

The Reserve Bank has been waiting for evidence that the economy can absorb tighter policy, and this is it.

ANZ Group Holdings Ltd (ASX: ANZ) already expects the Reserve Bank to lift the cash rate by 25 basis points to 4.60% in November, citing persistent inflation and resilient household spending.

Australia’s 10-year government bond yield has climbed to around 5.19%, its highest level in 15 years.

Higher discount rates compress the present value of every future dollar a company earns.

That is why long-duration ASX shares have struggled even as the growth data improved.

The banks are caught in the middle

Commonwealth Bank of Australia (ASX: CBA) is the clearest example of the tension.

A stronger economy means fewer bad loans, and CBA’s 90-day arrears sit at just 0.73%.

A higher cash rate also widens deposit margins, which feeds directly into the 2.05% net interest margin reported in FY26.

The offset is credit growth, since home loan applications have fallen roughly 15% since the May Federal Budget.

At 24.36 times earnings and a 3.18% yield, very little of the good news is still available cheaply.

ANZ offers the same exposure on 19 times earnings with a 4.45% yield.

As a result of all of this, brokers unsurprisingly remain split on which of the major banks deserves to carry the sector premium from here.

Retail is where the real risk sits

JB Hi-Fi Ltd (ASX: JBH) is a slightly different narrative.

The company’s FY26 revenue rose 4.8% to $11,064.0 million, and net profit after tax climbed 6% to $489.9 million.

The total ordinary dividend increased 22.5% to 337 cents per share.

JB Hi-Fi Australia and The Good Guys both recorded a slight dip in sales during July.

Consumer confidence fell 2.6 points to 74.9 in the latest ANZ-Roy Morgan survey.

A November rate rise would land directly on the mortgage holders who buy televisions and laptops.

Which ASX shares benefit from faster growth

Miners, energy producers and insurers all earn more when activity holds up and inflation runs a little warm.

The losers are the ASX shares valued on distant cash flows and the retailers most exposed to household budgets.

Foolish takeaway

A 0.4% quarter is not a boom.

However, it is more than enough to keep a November rate rise firmly on the table.

CBA looks fully priced for the good news, ANZ looks like better value on the same theme, and JB Hi-Fi looks cheap for understandable reasons.

I would not rebuild a portfolio around a single quarter of national accounts.

But I would take very seriously what the bond market is now saying about the cost of money.

The post Australia’s economy just grew faster than expected. What does this mean for ASX shares? appeared first on The Motley Fool Australia.

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Motley Fool contributor Mark Verhoeven has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Kaoko Metals Ltd (ASX: KAO) shares have shifted into top gear. The ASX small cap was up 160% to $1.91 during Wednesday afternoon trading, taking its gains to roughly 390% since its IPO in May 2026.

The shares have been rising so quickly that the ASX has issued Koako with what investors commonly call an ASX ‘speeding ticket’.

So, what’s behind the extraordinary move?

Copper find sends Kaoko shares soaring

Kaoko Metals is a mineral exploration company in Perth, focused on copper and other metals in Namibia.

The flagship asset of the ASX small cap is the Chalkos Copper-Silver Project in the prospective Kaoko Belt, where the company has recently commenced its maiden diamond drilling campaign.

The first results have certainly caught investors’ attention. Two completed drill holes at the Otniel prospect intersected broad zones of visible copper mineralisation.

One hole intersected 60.25 metres of visible copper mineralisation from 36.65 metres down-hole, including a stronger 32.36-metre zone. The second hole intersected 51.83 metres from 39.27 metres, including a 17.2-metre stronger zone.

The drill core contained several copper minerals, including chalcocite, malachite, cuprite, native copper and chalcopyrite. For a small, newly listed exploration company, broad zones of visible copper in the first holes of a maiden drilling program are naturally attracting plenty of investor interest.

And when a company’s market capitalisation is relatively small, roughly $45 million at the time of writing, a rush of buying can produce some extraordinary percentage gains.

Why did the ASX small get a ‘speeding ticket’?

Despite the name, Kaoko hasn’t been fined. An ASX ‘speeding ticket’ is an informal term for a price and volume query.

When a company’s shares experience an unusually large movement, the ASX can ask the company whether it is aware of any information that could explain the trading activity and whether it has complied with its continuous disclosure obligations.

In the case of this ASX small cap, the enormous share-price move has followed the company’s announcement about its encouraging copper drilling observations.

The speeding ticket is therefore not necessarily a negative development. It is essentially the ASX asking the company to explain the unusual market activity.

The big caveat for Kaoko investors

There’s an important catch. The copper mineralisation has been visually identified in the drill core, but the actual copper grades have not yet been confirmed by laboratory assays.

Those assays will be crucial. Kaoko expects the laboratory results in approximately four to six weeks. They should provide investors with a much clearer picture of the quality and potential economic significance of the mineralisation.

Until then, the ASX small cap remains a highly speculative exploration stock. The drill results have certainly given investors plenty to get excited about, but the assays will ultimately determine whether the spectacular share-price rally has substance behind it.

The post Why is this ASX small cap up 160% to get an ASX ‘speeding ticket’? appeared first on The Motley Fool Australia.

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Motley Fool contributor Marc Van Dinther has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The S&P/ASX 200 Index (ASX: XJO) has fallen further into the red on Wednesday. At the time of writing, the index is down around 1%, with declines across the majority of shares.

Inflation concerns, fears about more interest rate increases, and rising oil prices are spooking investors this week.

New Hope Corporation Ltd (ASX: NHC), Bank of Queensland Ltd (ASX: BOQ), and Santos Ltd (ASX: STO) are just some of the many companies under pressure today.

Let’s take a look at how their shares are tracking and what brokers tip next.

Hold New Hope shares

New Hope shares have fallen around 1.5% and are trading at $6.02 per share at the time of writing. After a rocky start to 2026, the thermal-coal miner’s shares are now up around 49% for the year to date.

New Hope’s operational picture has strengthened over the past couple of quarters, and its latest quarterly update in mid-August shows an increase in saleable coal production, higher coal sales, and an improved underlying EBITDA. 

The company also expects its Bengalla mine to return to its targeted production rate, and a ramp-up of production at its New Acland mine.

Brokers are mostly optimistic about the outlook for New Hope. But after the latest price rally, some are concerned that the shares are now fully priced. Market Index data shows the majority have a hold rating on the ASX shares. The $5.67 target price implies around a 6% downside, at the time of writing.

Hold BOQ shares

BOQ shares were caught up in an ASX bank stock sell-off throughout August. Investors have become spooked about how banks will cope with falling mortgage demand, a weaker housing market, higher inflation, and renewed concerns about interest rate hikes.

The intermediate bank’s shares have had a volatile run this year. They’ve fluctuated anywhere between a high of $7.43 and a low of $5.91. 

At the time of writing, BOQ shares are down slightly, around 0.1%, and trading at $6.56 a piece. The shares are now around 1% lower year to date.

In early August, BOQ announced a $295 million capital return to shareholders and a fully-franked special dividend of 15 cents per share.

The bank also reported a $47 million pre-tax ($33 million post-tax) impairment charge. This was related to technology and other asset reviews and will be recognised as a notable item in its FY26 results. BOQ is expected to post its full-year FY26 results in mid-October.

Investors weren’t thrilled with the update, and its shares tumbled around 6% shortly following the results announcement.

And it looks like the shares are still trading above fair value. According to Market Index, the majority of brokers have a hold rating on the shares. But the $6.06 average target price still implies a potential downside of around 8%, at the time of writing.

Buy Santos shares

Santos shares have trended higher so far in 2026, as recurring tensions between the US and Iran continue to fuel concerns over global oil supplies and support energy prices. 

Then, in mid-August, the shares spiked to a four-year high of $8.45 per share after the company posted its FY26 results.

Santos reported a 2% year-on-year increase in sales revenue to US$2.62 billion. Production volumes were also higher, up 1.7% to 48 million barrels of oil equivalent (mboe).

But the oil and gas giant also posted a 19% decline in its half-year statutory net profit after tax (NPAT), which fell to US$355 million. 

At the time of writing, Santos shares are down around 0.3% and changing hands at $8.26 per share. The share may have softened slightly today, but over the past month, Santos shares are up around 8%, and they’re 34% higher year to date.

And going forward it looks like they could climb even higher. Market Index shows that all brokers have a strong buy rating on the shares. And the $8.57 average target price implies a potential 4% upside, at the time of writing.

The post Buy, hold, sell: New Hope, BOQ, Santos shares appeared first on The Motley Fool Australia.

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• Term deposits are paying more than ever. Are ASX dividend shares still worth it?

Motley Fool contributor Samantha Menzies has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.