Market update: 18 November 2025
The Australian share market fell 1.5% this week, posting its third straight weekly loss. The drop was driven by stronger-than-expected jobs data, which reduced the likelihood of interest rate cuts in the near term. Investors had been hoping for some policy relief, but the data reinforced the Reserve Bank’s more hawkish tone, suggesting rates may stay higher for longer. This shift in expectations weighed on sentiment across most sectors, with Technology leading the declines after a weak performance from US tech stocks.
In the US, markets were mixed. While the Dow and S&P 500 edged up slightly, the Nasdaq slipped 0.5% as investors rotated out of growth-focused stocks amid rising scrutiny of AI spending. The end of the longest government shutdown in US history provided some relief, with a new funding bill now extending through to January 2026.
European markets moved higher this week, buoyed by weak UK economic data that increased the likelihood of a rate cut by the Bank of England in December. The Euro Stoxx 50 jumped 2.3% despite UK unemployment ticking up to 5% for the September quarter and GDP slowing more than expected. Across Greater China, results were mixed. The Hang Seng gained 1.3% while the Shanghai Composite dipped slightly as industrial production, retail sales and housing data all remained soft. Still, many economists expect the government’s 5% annual growth target to be achievable.
Japan’s Nikkei finished modestly higher, up 0.2%, as global sentiment improved following the end of the US shutdown. However, ongoing concerns about stretched AI stock valuations weighed on the tech sector. Prime Minister Sanae Takaichi reiterated her intention to pursue aggressive fiscal spending to support economic growth, signalling a continuation of Japan’s expansionary policy approach.
Don’t have the Raiz App?
Download it for free in the App store or the Webapp below:
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.
