Weekly Market Wrap 18 Oct 2025 - U.S. rebound lifts KiwiSaver outlook
Global markets found their rhythm again this week after a shaky start to October. The U.S. led the rebound as investors grew more confident about potential rate cuts, while the NZ and Australian markets took a quieter path which was steady, but cautious.
United States: Wall Street rebounds on rate-cut optimism
U.S. markets snapped a two-month losing streak, with the S&P 500 and Nasdaq both climbing around 0.5 % for the week. Confidence returned after the banking sector showed signs of stabilising, easing fears of wider credit issues.
Investors are now betting that the Federal Reserve could cut rates before year-end, with inflation and employment data both trending in the right direction. Tech and consumer stocks were the main winners, while bank shares recovered after recent turbulence.
💡 KiwiSaver insight:
If you’re in a growth or aggressive fund, this week’s global rebound likely gave your balance a lift. U.S. markets still drive much of the performance for international equity options within KiwiSaver.
New Zealand: Local market steady amid mixed results
Back home, the NZX 50 dipped slightly down about 0.8 % for the week but remains up over the past month.
Healthcare and logistics names like Ebos helped offset weakness in property and retail stocks.
Investor sentiment is cautious, with attention shifting to how the Reserve Bank of New Zealand will respond to slowing inflation and a softer housing market.
💡 KiwiSaver insight:
Balanced and conservative funds remain resilient, while growth funds will continue to move more in line with offshore markets. The NZX’s defensive nature provides useful stability in mixed global conditions.
Australia: Energy and bank stocks weigh on the ASX
Across the Tasman, the ASX 200 pulled back around 0.8 % from recent highs. Energy and bank stocks were the main drags, following a drop in oil prices and some softer trading updates from major lenders.
Even so, the ASX remains close to record levels, supported by optimism that the RBA may start easing rates in early 2026.
💡 KiwiSaver insight:
For members with Australian equity exposure, the short-term softness is minor in the bigger picture. Australia’s resource and dividend-heavy sectors continue to offer strong long-term value.
Currency & KiwiSaver impact
The New Zealand dollar eased slightly this week, trading around US $0.58 and AU $0.88.
That’s good news for investors, a weaker Kiwi means offshore investments are worth more when converted back to NZD, giving KiwiSaver funds with global exposure a small currency boost.
What to watch next week
U.S. inflation and jobs data for signs of rate-cut timing
RBNZ commentary and local economic indicators
Australian employment numbers
Corporate earnings season kicking off in the U.S.
Bottom line
Markets are finding some balance again.
Rate-cut hopes are lifting global sentiment, the U.S. rally is back on track, and local markets are quietly steady.
For KiwiSaver investors, it’s a reminder that staying the course through volatility often pays off — and that global trends remain the key driver of performance in diversified funds.
Disclaimer: No part of this article is intended as financial advice; it is intended as general information only. To see our Financial Advice Provider Disclosure Statement, please see our “Disclosure Statement” below. Past performance is not indicative of future performance.