Market update: 6 January 2026
Australia’s share market had a modest pullback this week after a strong finish to 2025, as investors weighed the possibility of further interest rate tightening. According to market futures and commentary, equities are expected to grind modestly higher in 2026 as rate discussions continue to dominate sentiment.
Across the US, markets ended mixed in a holiday-shortened week. The Nasdaq posted the largest decline among major indexes, while the Russell 2000 and S&P 500 also finished lower. In contrast, the Dow and S&P MidCap 400 were more resilient, slipping just 0.67% and 0.71%, respectively. Softer trading volumes around New Year’s Day contributed to this, yet the broader picture shows solid annual performance: major indexes achieved double digit returns for a third straight year. In housing, improved borrowing conditions and rising wages boosted pending home sales, and home values rose modestly.
In Europe, the STOXX Europe 600 hit a record high as the region wrapped up 2025 on a strong note, with broad gains across major bourses including Germany’s DAX and France’s CAC 40. Inflation in Spain eased, while the UK housing market showed some signs of softening. Despite these positives, central banks such as the Riksbank signalled a neutral policy stance for 2026, reflecting mixed economic signals.
Greater China markets were mixed. The Shanghai Composite was relatively flat, while the Hang Seng posted gains as manufacturing data showed expansion, ending a long period of contraction. However, retail sales and investment trends still point to subdued domestic demand. In Japan, markets dipped slightly over the new year weekend, with the Nikkei and TOPIX lower, and the yen remained under pressure against the US dollar. Japanese government bond yields rose to levels not seen in decades, as the Bank of Japan continues its gradual shift toward tighter monetary policy.
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Important Information
This information 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 Distribution 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.
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.
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.
