Market Update: 28 October 2026
Australia’s share market edged 0.1% lower over the week, with materials and information technology stocks weighing on the ASX 200, while financials and industrials provided some support. Sentiment was also affected by a hawkish speech from RBA Deputy Governor Andrew Hauser, reinforcing concerns that interest rates may need to remain higher for longer as inflation pressures persist. For investors, the focus remains on how interest rate expectations and the outlook for economic growth will shape market performance in the weeks ahead.
In the US, major share market indexes finished mixed as investors took a closer look at the growing cost of artificial intelligence investment and how technology companies are funding their spending. Bond yields eased, with the 10-year US Treasury yield slipping to around 4.99% after pending home sales fell 7.3% in September, pointing to ongoing weakness in the housing market. Meanwhile, oil prices climbed towards the end of the week as renewed tensions in the Middle East offset earlier optimism around diplomatic discussions between the US and Iran.
European markets faced renewed inflation concerns, with UK inflation rising to 3.5% and euro-area household inflation expectations increasing to 3.1%. These figures added to expectations that central banks may need to keep monetary policy tight or consider further rate increases. Higher oil prices also remain a potential source of inflation pressure, as more expensive energy can flow through to transport, production and household costs.
In Asia, Japan’s core inflation rose to 2.1%, adding to the challenge facing policymakers as they balance price pressures with economic growth. China also remains an important market to watch, particularly as investors assess the outlook for economic activity and the impact of policy support. Across global markets, the common theme was the tension between persistent inflation, interest rate uncertainty and the significant investment flowing into AI. For investors, this reinforces the value of a diversified portfolio and a long-term approach amid shifting market conditions.
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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.