Market Update - Month Overview (April 2026)

Summarised by Shara Cox (Report via Zenith)

Australian Market Summary

Australian markets delivered modest gains in April 2026, with local shares rising 2.2%, although performance lagged global markets due to the RBA’s increasingly hawkish stance and Australia’s lower exposure to technology and AI-driven sectors. Materials stocks benefited from stronger commodity prices, while healthcare remained weak. Inflation increased to 4.6%, largely driven by higher fuel prices, prompting the RBA to lift the cash rate to 4.35% and signal the possibility of further tightening. Australian bond yields also moved higher, while the AUD strengthened against the USD on the back of higher commodity prices and widening interest rate differentials.

International Markets:

Global markets rebounded strongly throughout April despite ongoing geopolitical tensions in the Middle East and the continued closure of the Strait of Hormuz. Investor sentiment was supported by resilient corporate earnings and growing optimism surrounding AI-related investment themes, particularly in the technology and semiconductor sectors. Developed global shares posted strong returns, led by US technology and communication services stocks, while emerging markets outperformed due to significant gains in Korea and Taiwan. Inflation pressures remained elevated globally, resulting in higher bond yields and expectations that central banks would maintain tighter monetary policy settings.