Market update: 9 September 2025

Global share markets were mixed this week. In Australia, the ASX 200 fell 1.1% as investors took some profits after a strong August and around 30 companies traded ex-dividend. All eleven major sectors finished in the red, led by Technology, which dropped 3.7%. Stronger-than-expected GDP data also weighed on rate cut hopes, with markets scaling back expectations of near-term easing.
In the US, major indices edged higher, with the S&P 500 gaining 0.3% and recording its 21st all-time high this year. The Nasdaq rose 1.1%, supported by Apple and Google shares, while the Dow was more subdued. Jobs growth slowed sharply, with just 22,000 positions added in August, compared to 79,000 in July. With this softer labour market data, markets are now expecting two rate cuts this year, in September and December. US housing inventory also climbed to its highest since 2017, with new home prices now falling below existing home prices.
European markets were quieter, with the FTSE edging up 0.2% while the Euro Stoxx 600 and Euro Stoxx 50 dipped 0.2% and 0.6%. Headline inflation ticked slightly higher to 2.1% but remains close to the ECB’s 2% target. Policymakers’ comments reinforced expectations that interest rates will likely stay unchanged in the months ahead.
Across Asia, the Hang Seng rose 1.4% but the Shanghai Composite slipped 1.2%. Optimism around advances in artificial intelligence and government campaigns to reduce overcapacity gave markets some support, though signs of a broader slowdown in the Chinese economy remain. In Japan, the Nikkei gained 0.7% after a trade agreement with the US capped tariffs on Japanese goods in exchange for Japan committing to invest around US$550m in US government selected projects.
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