Investment update - September 2025
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Published on 28 Oct 2025Markets were mixed in September, shaped by shifting macroeconomic and geopolitical dynamics. Gold surged 11.6% as investors sought safety, while WTI crude oil fell 2.6%, pressured by the OPEC+’s (Organisation of the Petroleum Exporting Countries Plus) decision to raise production and a ceasefire in the Middle East. The U.S. Federal Reserve cut rates by 25 basis points to a range of 4.0%–4.25% following a weakening labour market and softening consumer data, while a government shutdown since 1 October delayed vital economic reports, including jobs and CPI data Explosive growth in the AI sector, amplified by Nvidia’s US$300 billion OpenAI investment, drove U.S. equities higher.
In Australia, the RBA kept the cash rate unchanged at 3.60%, noting that while inflation has significantly declined since its 2022 peak, the pace of decline has slowed. Services and manufacturing activity slowed, and credit conditions tightened following a credit rating downgrade in the ACT and ASIC’s intervention in private credit markets. In Europe, political instability in France and rising security threats in Eastern Europe injected volatility into eurozone financial markets, dampening investor confidence. Emerging markets gained 5.8%, while Australian equities fell 0.7%.