Market update: 20 May 2025
The ASX 200 rose 1.4% this week, extending its recent recovery and reflecting a broader lift in global sentiment. Locally, gains were spread across eight of the eleven major sectors, with Energy and Technology leading the charge. While overall market activity was relatively quiet, earnings surprises drove some of the biggest stock movements. On the economic front, April delivered a strong jobs report, with 89,000 new roles added and the unemployment rate holding steady at 4.1%. Business confidence improved slightly but remains below long-run averages — another reminder that market conditions can be mixed, even in a rising environment.
Looking ahead, all eyes are on today’s RBA meeting, where markets are watching closely for signs of an interest rate cut. With inflation easing and wage growth moderating, some economists believe the central bank could move as early as this month. A cut would mark a shift in monetary policy — and could provide further support to both households and local equities.
For Raiz investors, this week’s rally is a helpful example of why staying the course matters. After weeks of volatility, markets surged following a major breakthrough in US-China trade talks. A 115% bilateral tariff reduction was agreed for at least 90 days, easing global concerns and powering markets higher. In the US, the Nasdaq jumped 7.2%, the S&P 500 gained 5.3%, and the Dow rose 3.4%. Inflation came in softer than expected too, with CPI falling to 2.3% — the lowest since early 2021. For those consistently investing, this kind of turnaround highlights the benefit of dollar-cost averaging and long-term thinking, both of which are core to how Raiz helps you grow your balance over time.
In Greater China, markets rose early in the week on trade optimism before paring back some gains as expectations for a stimulus package eased. Japan’s Nikkei closed 0.7% higher, though sentiment was tempered by weak Q1 GDP data and inconclusive trade talks with the US. Meanwhile, European markets ended higher across the board. The FTSE gained 1.5%, and the Euro Stoxx 50 rose 2.2% as UK GDP beat expectations — a reminder that even amid global uncertainty, individual economies can outperform.
With tariff tensions cooling and earnings season in full swing, this week showed how quickly markets can shift. At Raiz, our automated investing approach is designed to keep you steady through the noise — making the most of the ups and staying invested through the downs.
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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.
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