Market update: 18 August 2026
Australian shares took a breather this week, with the ASX 200 falling 1.6% and snapping its recent run of record highs as reporting season gathered pace. Investors were particularly focused on company earnings and outlooks, with even modest disappointments prompting sharp share price moves. Bank results weighed on the broader market, while utilities, technology, healthcare and energy stocks provided some support. The RBA also left the cash rate unchanged at 4.35%.
In the US, the S&P 500 gained 0.4% to reach another record high. A softer-than-expected inflation reading, alongside weaker retail sales and employment data, strengthened expectations that the US Federal Reserve may have more room to lower interest rates. A strong second-quarter earnings season also helped sentiment, while enthusiasm around artificial intelligence remained strong, highlighted by Nvidia’s US$500 billion AI infrastructure funding initiative.
European shares were relatively steady, as improving economic activity was balanced by geopolitical uncertainty and limited market-moving news. In Japan, shares performed strongly as softer US inflation and employment data reduced expectations for higher US interest rates, providing a boost to technology and semiconductor stocks.
Chinese and Hong Kong markets had a weaker week. Further measures to support China’s property sector initially helped sentiment, but softer inflation and economic data pointed to continued weakness in domestic demand and industrial activity. Renewed US-China trade tensions and weakness among consumer-focused technology companies also weighed on markets.
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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
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.
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