Market update: 24 February 2026
Australian shares performed well this week, with the ASX 200 rising 1.8%. Strong earnings from miners and banks helped lift the index, alongside a rotation away from US tech stocks. Gains were led by technology, energy, telecommunications and healthcare. While valuations remain elevated and the RBA maintains a hawkish stance, earnings strength provided enough support to keep sentiment positive. February’s composite PMI softened slightly but still pointed to moderate economic growth.
US markets also moved higher, supported by a late-week rally after the Supreme Court struck down President Trump’s global tariffs. The Nasdaq rose 1.5%, the S&P 500 gained 1.1% and the Dow lifted 0.3%. However, sentiment remained mixed beneath the surface. Concerns are building that mega cap companies may be overinvesting in AI, with a significant portion of operating cash flow being redirected toward capital expenditure. Aggregate AI-related spending guidance is now approaching US$700 billion. Oil prices jumped around 5% amid renewed tensions with Iran, adding to inflation concerns. Fed minutes reflected a more hawkish tone, highlighting persistent inflation risks and a labour market that has not softened as much as expected.
European equities strengthened, with the STOXX 600 rising 2.1% to a new high. Earnings and macro data improved across major markets. In the UK, inflation eased to 3.0% and softer labour data lifted expectations for a Bank of England rate cut in March. While eurozone industrial production remained soft, forward-looking indicators such as improving PMIs and new orders suggested stabilisation in activity.
Greater China markets were subdued, with mainland exchanges closed for Lunar New Year. The Hang Seng slipped 0.6% in a shortened week marked by low liquidity and cautious sentiment. Policy developments remained in focus, with the IMF encouraging a shift toward consumption-led growth and China increasing telecom VAT rates.
Japan’s equity market eased slightly, with the Nikkei down 0.2%. Geopolitical tensions and softer-than-expected fourth quarter GDP weighed on sentiment. Inflation cooled to a two-year low and the yen weakened, while 10-year government bond yields fell as the Prime Minister reiterated a more investment-focused fiscal policy.
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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.
