Market update: 4 November 2025
The Australian share market pulled back this week, with the ASX 200 falling 1.5%. A higher-than-expected inflation reading for the September quarter raised doubts about any near-term rate cuts from the RBA, sending shares lower across most sectors. Healthcare led the declines, dragged down by CSL after the company downgraded its guidance and postponed the planned Seqirus demerger at its AGM. In total, eight of the eleven major sectors closed in the red.
In contrast, US markets finished the week higher, led by the Nasdaq which rose 2.2%. The Federal Reserve cut interest rates to 3.85%-4.0% and announced plans to halt its balance sheet runoff in December, helping boost investor sentiment. While earnings results from big tech were mixed, the ongoing boom in AI helped lift Nvidia to a staggering US$5 trillion market valuation. The week also saw positive geopolitical news, with the US and China agreeing to a temporary trade truce – lowering tariffs and suspending Chinese export restrictions on rare earth materials.
European markets were more subdued. The ECB kept rates on hold for the third meeting in a row, as inflation continues to hover near the 2% target. While the UK’s FTSE gained slightly, broader European indexes finished lower as investors processed the region’s modest economic outlook and soft earnings updates.
Meanwhile, in Asia, Japan was the standout performer. The Nikkei surged 6.3% for the week and capped off October with a 16.6% monthly gain – the strongest since 1994. Markets were buoyed by expectations of a large-scale stimulus package and the Bank of Japan’s decision to leave interest rates unchanged. Greater China markets ended mixed, balancing cautious optimism from improved US-China trade relations against disappointing local economic data and a lack of fresh policy support from Beijing.
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This information has been issued by Instreet Investment Limited (ACN 128 813 016 AFSL 434776) as Responsible Entity of the Raiz Invest Australia Fund (ARSN 607 533 022) and has been prepared without taking into account your objectives, financial situation or needs. Before acting on such information, you should conduct your own review or consult a financial advisor before making a decision to invest. Please read the relevant Product Disclosure Statement and any associated reference documents before making an investment decision. In accordance with the Design and Distribution Obligations, we maintain TMDs for our Funds. All documents can be found on the Raiz website www.raizinvest.com.au, or calling the Customer Support team on 1300 754 748.
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Please note that past performance is not a reliable indicator or guarantee of future performance. Historical returns, forecasts, and market commentary are provided for general informational purposes only. All investment carries risk and may result in loss of capital.
