Market update: 16 June 2026
Australian shares delivered a strong performance this week, with the ASX 200 rising 2.1%. Investors were encouraged by growing speculation that the RBA may be nearing the end of its tightening cycle, helping the local market shrug off weakness in US markets earlier in the week. Gains were broad-based, with consumer, property, healthcare and industrial stocks leading the way. Despite the rebound, Australian shares remain relative underperformers this year as investors continue to navigate sticky inflation and the impact of recent Federal Budget tax changes.
US markets finished the week higher, with the S&P 500, Dow Jones and Nasdaq all posting modest gains. Consumer spending remained a key source of strength, with card spending increasing 6.1% compared to a year ago. The biggest headline was the SpaceX IPO, which raised approximately US$75 billion and became the largest public offering on record. Inflation, however, remains a challenge, with consumer prices rising 4.2% over the year in May as higher energy costs flowed through the economy. Markets also reacted to developments in the Middle East, with optimism around a potential US-Iran agreement helping sentiment recover later in the week.
European equities moved higher, with the Euro Stoxx 600 gaining 1.7%. Investor confidence improved as hopes for easing geopolitical tensions supported markets. The European Central Bank raised interest rates by 25 basis points, its first rate hike since 2023, while warning that energy prices and inflation continue to present risks to the outlook. Economic data was mixed, with German industrial production improving but inflation remaining elevated in parts of the region.
Japanese shares were one of the weaker performers this week, with the Nikkei falling 0.9%. Rising energy costs and geopolitical tensions weighed on sentiment earlier in the week, and although markets recovered somewhat as tensions eased, Japanese equities struggled to regain all of their losses. Investors also remain cautious as central banks around the world continue to maintain a firm stance on inflation.
Chinese markets were mixed, with the Shanghai Composite edging up 0.1% while the Hang Seng fell 1.0%. Global geopolitical uncertainty and expectations that interest rates could remain higher for longer continued to weigh on sentiment. While optimism around easing tensions between the US and Iran provided some support, concerns about domestic growth and manufacturing momentum remain a focus for investors.
Don’t have the Raiz App?
Download it for free in the App store or the Webapp below:
Important Information
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
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).
Raiz Invest Australia Limited (ABN 26 604 402 815) (Corporate Authorised Representative of Instreet Investment Limited ABN 44 128 813 016, AFSL 434776) is the promoter of Raiz Invest Super, a Division of AMG Super. The Product Disclosure Statement (PDS), Member Guide and Target Market Determination (TMD) are issued by Equity Trustees Superannuation Limited (AFSL 229757, RSE Licence No L0001458) as Trustee of AMG Super.
The information 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 PDS and any associated reference documents before making an investment decision. In accordance with the Design and Distributions 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. 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.
