Market update: 2 June 2026
Australian shares edged higher this week, with the ASX 200 up 0.9%. Sentiment was supported by reports of a tentative deal to help secure shipping through the Strait of Hormuz, easing some concerns around global energy supply. Locally, inflation trends also showed signs of improvement, with a greater proportion of CPI components recording more moderate price increases. While markets remain sensitive to geopolitical developments, investors are increasingly hopeful that cooling inflation could provide greater flexibility for monetary policy in the months ahead.
US markets finished the week higher, with the S&P 500 up 1.4%, the Nasdaq gaining 2.4% and the Dow Jones rising 0.9%. Optimism was fuelled by a proposed 60-day extension to the US-Iran ceasefire and renewed nuclear talks, which helped lower oil prices and improve supply stability. However, some economic challenges remain. First quarter GDP was revised lower, consumer sentiment fell to a record low and mortgage rates continued to climb. Despite these headwinds, technology stocks remained a key driver of market performance.
European equities were relatively flat, with the Euro Stoxx 600 edging up 0.1%. Investors balanced hopes of easing geopolitical tensions against slowing economic growth and persistent inflation pressures. The European Commission lowered its 2026 growth forecast, citing the impact of higher energy costs and ongoing trade uncertainty. Inflation also remained elevated, while weaker exports to the US weighed on the region’s trade surplus.
Japan was one of the strongest-performing markets this week, with the Nikkei surging 4.7%. Technology and AI-related stocks led gains as investors embraced a more positive risk environment. Economic growth came in stronger than expected, although inflation remained below the Bank of Japan’s target for a third consecutive month. The softer inflation data contributed to a weaker yen and kept attention focused on the potential path of interest rates.
Chinese markets moved lower, with the Shanghai Composite down 1.1% and the Hang Seng falling 1.7%. Economic data pointed to a slowdown in momentum, with weaker industrial output, retail sales and fixed asset investment raising concerns about the strength of the recovery. The People’s Bank of China maintained its policy settings, while geopolitical developments, including closer cooperation between China and Russia, remained in focus for investors.
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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.
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.
