Market update: 5 November 2024
The ASX 200 faced a challenging week, closing 1.1% lower at its weakest level in seven weeks. Losses were broad, with only Technology (+2.5%) and Materials (+0.4%) sectors managing gains. As Australia tracked global selloffs ahead of the US Federal Reserve meeting and the presidential election, expectations for the Reserve Bank of Australia’s first rate cut were pushed further out, now anticipated in July next year. This follows quarterly CPI data showing core inflation rose 0.8%, exceeding forecasts of 0.7%.
In the US, all major indices ended lower with the Nasdaq, S&P 500, and Dow Jones slipping 1.5%, 1.4%, and 0.1%, respectively. The latest jobs report revealed only 12,000 new jobs in October—well below the expected 100,000—indicating a softening in the labour market. However, the US economy grew at a strong 2.8% in Q3, driven by consumer spending.
European markets also closed lower, marking a third consecutive week of losses. The Euro Stoxx 600, Euro Stoxx 50, and FTSE fell 1.5%, 1.3%, and 0.9%, respectively, with earnings results falling short of expectations. The UK’s latest budget release and higher-than-expected inflation in the Eurozone add to the uncertainty as investors await US developments next week.
In Asia, the Shanghai Composite and Hang Seng indices slipped 0.8% and 0.4%, respectively, as mixed economic data emerged from China. The National Bureau of Statistics reported improved manufacturing activity, but the services sector lagged. Investors are now focusing on the National People’s Congress in early November for potential fiscal policy updates. Meanwhile, Japan saw modest gains, with the Nikkei up 0.4% after the Bank of Japan maintained its interest rate, with cautious optimism about the economic outlook.
Don’t have the Raiz App?
Download it for free in the App store or the Webapp below:
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.
The information is general information only and does not take into account of your personal financial situation, goals or needs. You should obtain financial advice tailored to your circumstances by a licensed financial adviser.
A Product Disclosure Statement (PDS) and Target Market Determination (TMD) for Raiz Invest Australia Fund, Raiz Invest Super and Raiz Property Fund (together, the Products) are available on the Raiz Invest website and App. Please read and consider the PDS and TMD to understand the risks and determine if the Products are suitable for you. The risks and fees are fully set out in the PDS and include the risks that would ordinarily apply to investing.
Any returns shown or implied are not forecasts and are not reliable guides or predictors of future performance.
Under no circumstance is the information to be used by, or presented to, a person for the purposes of deciding about investing in the Products.
This information may be based on assumptions or market conditions which change without notice and have not been independently verified.
Any opinions or information expressed are subject to change without notice.
Home loans are subject to approval from the lending institution and Raiz Home Ownership makes no warranties as to the success of an application until all relevant information has been provided.
Raiz Home Ownership Pty Ltd (ABN 14 645 876 937), an Australian Credit Representative number 528594 under Australian Credit Licence number 387025. Raiz Home Ownership Pty Ltd is 100% owned by Raiz Invest Australia Limited (ABN 26 604 402 815).
