Market update: 10 March 2026
Australian shares fell sharply this week, with the ASX 200 down 3.8%. Strong economic data and hawkish commentary from the RBA pushed markets to reassess the near term path of interest rates. GDP grew 0.8% for the quarter and 2.6% over the year, suggesting the economy is running above supply capacity. However, a slowdown in household consumption compared with RBA forecasts raised concerns about demand momentum. While unit labour costs eased slightly, weak productivity, high public sector spending and ongoing supply constraints continue to make the inflation outlook more complicated.
In the US, markets also moved lower as escalating tensions in the Middle East and sharp swings in oil prices triggered a broad shift toward safer assets. The Nasdaq fell 1.2%, the S&P 500 declined 2.0% and the Dow dropped 3.0%. Investors moved into government bonds, gold and other defensive assets as concerns grew around potential supply disruptions. Cyclical sectors were particularly affected, and the week marked the weakest performance for US equities since October. Private credit markets also faced scrutiny as pockets of stress appeared in senior loans and default headlines resurfaced.
European equities saw a sharp selloff, with the STOXX 600 falling 5.5% after several weeks of gains. Rising oil and gas prices reignited concerns about inflation and slower growth. Eurozone CPI rose to 1.9%, ahead of expectations, which increased the perceived likelihood of another ECB rate hike. Despite these concerns, the region’s labour market remained strong, with unemployment falling to a record low of 6.1%.
Japan’s Nikkei dropped 5.5% as markets reacted to the potential inflation impact of rising energy prices. Japan relies heavily on imported oil and gas, making the economy particularly sensitive to global energy costs. Bank of Japan Governor Ueda warned that the conflict could have significant consequences for both global and domestic economic conditions through energy price shocks and financial market volatility. Domestic factors offered some support, with expectations for stronger wage growth this year.
Chinese markets also declined, with the Shanghai Composite down 0.9% and the Hang Seng falling 3.3%. Geopolitical risks weighed on sentiment despite new policy announcements from the National People’s Congress. China set a 2026 GDP growth target of 4.5% to 5.0% and outlined expanded fiscal support, including new financing tools and additional local government bond issuance.
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This blog 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 Distributions Obligations, we maintain Target Market Determinations 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. 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.
