Market update: 18 March 2025
The ASX 200 dropped another 2.0% this week, marking its fourth consecutive weekly decline and extending losses to 9.0% from record highs after Trump confirmed that Australia would not be exempt from tariffs on steel and aluminium. This news weighed heavily on investor sentiment, with 8 out of 11 sectors closing in the red. The technology sector led losses, down 4.3%, as several major stocks, including WiseTech and CAR, traded ex-dividend. With just 5 gains in the last 20 trading sessions, the Australian market remains under pressure amid ongoing global trade tensions.
In the US, markets also struggled, with the S&P 500, Nasdaq, and Dow Jones down 2.3%, 2.4%, and 3.1%, respectively. The S&P 500 entered correction territory, hitting its lowest level in six months, as Trump’s escalating trade policies added to uncertainty. Meanwhile, February’s inflation data provided some relief, with headline and core Consumer Price Index both printing below expectations at 0.2% MoM, though the Fed’s preferred PCE (Personal Consumption Expenditures = the Federal Reserve’s preferred measure of inflation in the United States) inflation measure remained elevated, reducing the likelihood of near-term rate cuts.
Elsewhere, markets were mixed. European equities declined for a second straight week, with the Euro Stoxx 50 and Euro Stoxx 600 down 1.2% as the EU retaliated against US steel and aluminium tariffs by imposing duties on €26 billion worth of American goods. Trump countered with threats of a 200% tariff on European alcoholic beverages, escalating trade tensions further. Greater China markets were more resilient, with the Shanghai Composite up 1.4%, as investors remained optimistic about China’s push for economic expansion and tech innovation. Meanwhile, Japan’s Nikkei ended the week up 0.4%, rebounding on Friday after the largest wage increases in over three decades were secured in labour negotiations. With global markets reacting to tariffs, inflation, and economic uncertainty, we’ll keep tracking the key drivers shaping investment trends.
Don’t have the Raiz App?
Download it for free in the App store or the Webapp below:
Important Information
Raiz Invest Australia Limited – Authorised Representative of AFSL 434776. The Raiz Invest Australia Fund and Raiz Property Fund are issued in Australia by Instreet Investment Limited (ACN 128 813 016 AFSL 434776) a subsidiary of Raiz Invest Limited and promoted by Raiz Invest Australia Limited (ACN 604 402 815).
Raiz Invest Super is a Division of AMG Super and is issued by Equity Trustees Superannuation Limited (AFSL 229757, RSE Licence No L0001458) as Trustee of AMG Super.
The information is general information only and does not take into account of your personal financial situation, goals or needs. You should obtain financial advice tailored to your circumstances by a licensed financial adviser.
A Product Disclosure Statement (PDS) and Target Market Determination (TMD) for Raiz Invest Australia Fund, Raiz Invest Super and Raiz Property Fund (together, the Products) are available on the Raiz Invest website and App. Please read and consider the PDS and TMD to understand the risks and determine if the Products are suitable for you. The risks and fees are fully set out in the PDS and include the risks that would ordinarily apply to investing.
Any returns shown or implied are not forecasts and are not reliable guides or predictors of future performance.
Under no circumstance is the information to be used by, or presented to, a person for the purposes of deciding about investing in the Products.
This information may be based on assumptions or market conditions which change without notice and have not been independently verified.
Any opinions or information expressed are subject to change without notice.
Home loans are subject to approval from the lending institution and Raiz Home Ownership makes no warranties as to the success of an application until all relevant information has been provided.
Raiz Home Ownership Pty Ltd (ABN 14 645 876 937), an Australian Credit Representative number 528594 under Australian Credit Licence number 387025. Raiz Home Ownership Pty Ltd is 100% owned by Raiz Invest Australia Limited (ABN 26 604 402 815).
