Market update: 21 April 2026
Australian shares edged slightly lower this week, with the ASX 200 down 0.2%. Higher fuel prices continued to flow through to the broader economy, pushing inflation expectations to their highest level since 2022. Business surveys also pointed to renewed cost pressures, while both consumer and business confidence weakened, raising concerns about the outlook for growth and household spending. Despite this, the technology sector stood out, rising 13.0% on the back of positive momentum from US mega cap tech.
US markets extended their rally, with the S&P 500 up 4.5%, the Dow rising 3.2% and the Nasdaq climbing 6.8%. Improved sentiment followed further easing in geopolitical tensions, which helped bring investors back into equities. Strong earnings revisions supported valuations, while investors who had reduced exposure earlier in the year began redeploying capital, adding momentum to the rally. Record US oil exports and a weaker US dollar also supported the broader risk-on environment.
European equities moved higher, with the Euro Stoxx 600 rising 1.9% as markets responded positively to improved sentiment following geopolitical developments. However, rising energy costs continued to weigh on the outlook, with the IMF trimming its growth forecasts for the eurozone. The European Central Bank signalled no urgency to raise interest rates, balancing inflation risks against growth concerns.
Japanese equities also advanced, with the Nikkei up 2.7%. As geopolitical tensions eased, investors returned to themes such as artificial intelligence, strong earnings and corporate governance reform. At the same time, expectations for a near term rate hike from the Bank of Japan eased, as uncertainty around energy-driven inflation and growth persisted. Business sentiment, however, weakened due to ongoing supply chain disruptions.
Chinese markets posted modest gains, with the Shanghai Composite up 1.6% and the Hang Seng rising 1.0%. Stronger than expected GDP growth and resilient industrial output supported sentiment, although ongoing weakness in the property sector and slowing consumer demand continued to weigh on the outlook. Trade and credit data pointed to uneven momentum, reinforcing expectations of stabilisation rather than a strong rebound.
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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 conduct your own review or consult a financial advisor before making a decision to invest. Please read the relevant Product Disclosure Statement and any associated reference documents before making an investment decision. In accordance with the Design and Distributions Obligations, we maintain Target Market Determinations 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.
