December 2025 Market Update (Christmas Edition)

Summer Vibes and Market Moves: What’s Happening Now?

Summer has officially arrived! It’s the season of sunshine, family gatherings, festive celebrations, and well-deserved holidays. From all of us, we’d like to wish you and your loved ones a joyful and safe festive season.

But while the weather is heating up, so is the economy. November brought renewed pressure as inflation ticked higher. The latest CPI figures show annual inflation rising to 3.8% in October, up from 3.6% the previous month. The Reserve Bank held rates steady in November, but economists are hinting that a rate hike could be on the horizon.

Despite the uncertainty, there’s a glimmer of optimism. Consumer confidence is making a comeback, with the Westpac–Melbourne Institute Consumer Sentiment Index jumping to its highest level since February 2022. That’s a big shift in mood.

On the jobs front, unemployment eased slightly to 4.3% in October, after hitting a four-year high of 4.5% in September. Wage growth remains strong, though, which is keeping the RBA on alert about a still-tight labour market.

Global equity markets? Volatile. Concerns over an emerging AI bubble, rising government debt, and shifting US tariffs kept investors on edge. Meanwhile, surging commodity prices gave the Australian dollar a boost late in the month. Gold hit record highs, iron ore held firm, and the Aussie dollar closed November at $0.653, its highest level in two weeks.