Market update: 31 March 2026
Australian shares edged higher this week, with the ASX 200 up 1.0%, supported by strength in energy and materials as oil prices climbed. However, rising petrol prices, weaker PMI data and falling consumer confidence highlighted growing concerns that higher energy costs could push inflation higher. While gains in resource-linked sectors helped lift the market, the broader outlook remains sensitive to how inflation evolves from here.
US markets moved lower, with the S&P 500 down 2.1%, the Dow falling 0.9% and the Nasdaq dropping 3.2%. Ongoing tensions linked to the Iran conflict and a surge in oil prices drove a risk-off tone across markets, with crude prices reaching four-year highs. Investors also kept a close eye on private credit, where losses at large investment vehicles and renewed redemption limits raised concerns about potential spillovers if market volatility continues.
European equities edged slightly higher, with the STOXX 600 up 0.4%. Markets balanced the impact of rising energy costs against cautious messaging from the European Central Bank and signs of weakening business activity. The overall tone remains mixed, with inflation risks and growth concerns both in focus.
In Japan, the Nikkei finished flat as higher oil prices and geopolitical tensions weighed on sentiment. Japan’s reliance on imported energy continues to make it sensitive to global price moves. The yen remained weak near JPY 160, keeping the risk of policy intervention in focus, while rising government bond yields pointed to firmer inflation expectations.
Chinese equities declined this week, with the Shanghai Composite down 1.1% and the Hang Seng falling 1.3%. Higher oil prices weighed on energy-sensitive sectors, while new trade actions added to geopolitical uncertainty. In response, Beijing moved to cap domestic fuel price increases and launched new trade probes into US practices.
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This blog 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 Distributions Obligations, we maintain Target Market Determinations 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. 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.
