Weekly recap
What happened in markets
The Australian sharemarket ended the week lower, as the ASX 200 dropped 0.9%, as risk appetite softened into year-end. Early strength faded after fears the Reserve Bank of Australia could be the first major central bank to return to interest rate hikes in 2026, following the recent upswing in inflation. The Health Care (-3.4%) and Energy (-5.7%) sectors were notable drags, as the price of oil dropped to ~US$56 per barrel. In contrast, defensive areas such as Financials (+0.4%) and Industrials (+0.5%) were the only bright spots on the market.
US sharemarkets finished the week mixed, as the S&P 500 added 0.1%, while the Dow Jones closed 0.7% lower. The major Information Technology companies outperformed, led by gains in Tesla (+4.9%), NVIDIA Corporation (+3.4%) and Meta (+2.3%). Gains in the Information Technology sector were offset by weakness amongst the Energy (-2.9%) and Consumer Staples (-0.9%) sectors. It was a data-heavy week as government agencies continued to play catch-up after the government shutdown. The November Consumer Price Index was released and reinforced the view that inflation pressures are easing and keeping the Federal Reserve biased toward further rate cuts, while Retail Sales beat expectations.
European sharemarkets finished the week modestly higher, as the STOXX Europe 600 extended its advance as it gained 1.6%. Central banks were in focus, as the European Central Bank held rates steady, while the Bank of England delivered a 0.25% cut, however struck a cautious tone, reinforcing expectations of gradual rather than aggressive easing. Economic data was mixed, UK inflation and labour data weakened, underpinning rate-cut expectations into 2026. As for the sector performances, markets were led by the Financial Services (+4.4%) sector and the Basic Resources (+3.3%) sector, while the Technology (-0.9%) and Health Care (-0.7%) sectors lagged.
Stock & sector Movements
Happy Holidays
Today is the last Investment Lens for 2025.
We trust you have found our updates informative and interesting, in what has been a positive year for sharemarkets.
From the Cutcher & Neale Financial Planning and Wealth Management Team, we wish you a safe and happy holiday period, and we will return in late January 2026.
A comprehensive investment strategy and strong asset allocation can assist with maximising the benefits and minimising the risk across your portfolio as part of achieving your individual goals and objectives. Supported by our dedicated investment team, we focus on communicating market developments and investment opportunities to our clients in a timely manner. We take the time to fully understand both your current financial position and goals. Then we tailor a comprehensive investment strategy to match and implement it on your behalf.
