Market update: 17 February 2026
Australian shares had a strong week, with the ASX 200 rising 2.4% and briefly touching record highs before easing slightly. The lift was supported by a return to profit growth after three years of declines. Utilities, financials, materials and consumer staples led gains. Early earnings results delivered more upside surprises than usual, helping the local market outperform the US. However, elevated valuations contributed to more volatile share price reactions as investors responded quickly to results.
US markets declined overall, with the Dow, S&P 500 and Nasdaq finishing lower for the week. Despite this, the underlying data was more supportive. Softer January inflation reinforced the disinflation trend, with both headline and core CPI rising just 0.2% month on month. Stabilising labour data and a strong payrolls result added to confidence that inflation is easing without derailing growth. Earnings season also provided support, with 74% of companies beating expectations and fourth quarter growth tracking at 13% year on year. However, mega cap tech weakness and heavy bond issuance to fund AI investment weighed on sentiment, highlighting the scale of capital required for ongoing infrastructure expansion.
European equities were mixed but broadly steady. The FTSE and Euro Stoxx 600 edged higher, while the Euro Stoxx 50 slipped slightly. Growth and employment improved across parts of the eurozone, particularly in Spain, although Germany and France showed more mixed signals. In the UK, sentiment softened amid political uncertainty, though GDP and retail sales recorded modest gains.
Greater China markets edged higher ahead of the Lunar New Year break. Inflation continued to cool and producer prices remained in deflation, while signs of tentative property market stabilisation helped sentiment. The People’s Bank of China reaffirmed its moderately loose policy stance, offering further support.
Japan had a standout week, with the Nikkei rising 5%. Investor confidence improved after the Liberal Democratic Party secured a supermajority, boosting expectations for significant fiscal and defence spending. Government bond yields were steady, and the yen strengthened following intervention, supporting broader market sentiment.
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.
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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.
