Market update: 7 October 2025
Australia’s share market finished the week on a strong note, with the ASX 200 gaining 2.3%. The Reserve Bank of Australia kept interest rates steady at 3.60%, as expected, but struck a slightly hawkish tone on inflation, particularly in the services sector, where price pressures remain persistent. That cautious stance has led markets to temper expectations for rate cuts later this year, now pricing in roughly half a cut by December. Healthcare stocks led the local rally, up 4.6%, taking cues from the sector’s strength in the US after Pfizer struck a new pricing deal with the White House.
Global markets also had reason to celebrate. In the US, the Nasdaq, S&P 500 and Dow Jones all hit record highs, up around 1% for the week. Even a midweek government shutdown didn’t dent sentiment, as investors focused on positive corporate developments and the prospect of more rate cuts following softer employment data. The US healthcare sector was the standout, jumping over 5% for its best week in more than five years.
Across Europe, major indexes also advanced strongly, helped by gains in technology shares and optimism that lower US borrowing costs will ease global financial conditions. Inflation in the eurozone edged up slightly to 2.2%, but European Central Bank President Christine Lagarde reassured markets that inflation remains within target and that the ECB is ready to respond if needed.
In Asia, China’s markets saw light activity during the Golden Week holiday, with expectations that the extended break will lift domestic spending. Japan’s Nikkei rose 0.9%, boosted by enthusiasm for AI-related technology and confirmation from the Bank of Japan that it still plans to move towards higher interest rates.
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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.
