Market Update - Month Overview (September 2026)

Summarised by Shara Cox (Report via Zenith)

Australian Market Summary

Australian shares fell 2.4% in September, underperforming global markets as inflation reaccelerated and the Reserve Bank of Australia lifted the cash rate to 4.60%, its fourth increase in 2026. Higher interest rates, housing market weakness and concerns around productivity weighed on investor sentiment, while rate-sensitive assets such as property and bonds also declined. The healthcare sector was a bright spot, although weakness in technology, materials, banks and mining stocks dragged the market lower. The Australian dollar also weakened against the US dollar as interest rate differentials shifted in favour of the US.

International Markets:

Global markets had a challenging month as rising bond yields, higher oil prices and the US Federal Reserve's first interest rate hike since 2023 weighed on sentiment. Despite these headwinds, strong corporate earnings helped keep major share markets close to record highs. Unhedged global shares delivered positive returns for Australian investors, aided by the weaker Australian dollar, while emerging markets posted modest gains. Rising interest rates across major economies also led to declines in global bonds, listed property and infrastructure, with investors demanding higher returns amid inflation concerns and ongoing geopolitical tensions in the Middle East.