Australia Market Overview
Steady Recovery, RBA Holds Rates
The Reserve Bank of Australia left the cash rate at 3.60% in September, maintaining a cautious stance as the economy continues to recover. Private demand is improving, and inflation remains comfortably within the 2–3% target range, but domestic and global uncertainties mean the RBA is watching closely. Financial conditions have eased following earlier rate cuts, and markets are pricing in the possibility of one further cut, potentially in November or early 2026.
Signs of Recovery
Household spending is strengthening, supported by rising incomes and improved confidence. The housing market has firmed, and business conditions are showing improvement, though investment outside housing has yet to regain momentum. Overall, the recovery is steady and measured.
Labour Market & Inflation
Hiring remains solid, wages are growing modestly, and price growth is manageable. Inflation is within the target range, with some areas seeing slightly higher pressures. The interplay between household consumption, productivity, and labour costs will guide the RBA’s next moves.
Global Market Overview
Geopolitical Tensions
October has brought renewed uncertainty, with US-China trade tensions and a temporary US government shutdown adding to the global backdrop. Markets have largely looked through these events, supported by gradual monetary easing and ongoing investor confidence.
Inflation and Monetary Policy
- United States: The Federal Reserve delivered its first rate cut of the year to support growth amid signs of labour market softening. Further cuts remain possible before year-end, depending on incoming data.
- Europe & UK: Central banks are proceeding cautiously, with persistent inflation and energy risks constraining the scope for easing. Monetary policy is expected to remain steady for now.
- Asia: China continues to rely on targeted fiscal and credit measures to support domestic demand, while strong AI-driven demand is boosting growth across the region.
Economic Growth and Commodities
Commodities strengthened in September, led by gold and copper, while oil eased slightly. Global growth remains uneven, with technology-driven demand in the US and Asia balancing weaker activity in parts of Europe.
Skyring Update
For investors, this environment of easier financial conditions and a gradually improving domestic backdrop is supportive for income-focused strategies. Skyring continues to prioritise consistent income and capital preservation through disciplined, risk-aware approaches.
For a limited time, new investments in the Skyring Fixed Income Fund (Bonus Class) receive an extra 1.50% p.a.^, lifting the total distribution rate to 8.05% p.a.^, paid monthly. Investors considering new contributions or additions to their accounts can apply online using the link below or contact our Investor Relations team on 1300 73 72 74.
PDS & TMD Download
Apply Online
Important Information:
This blog post is for general information only and does not consider your personal circumstances, financial needs, or objectives. You should read the Product Disclosure Statement carefully before investing. Past performance is not a reliable indicator of future results. Investments carry risks including possible loss of capital. No guarantee is made regarding the repayment of capital or the payment of income.
As with all investments, returns are subject to market conditions and the performance of the underlying assets.
The figures in this blog are for illustrative purposes only and based on indicative distribution rates. Actual returns may vary.
Past performance is not a reliable indicator of future performance. The rates of return from the Fund are not guaranteed. An investment in the Fund is not a bank deposit and is subject to investment risk, including the loss of capital invested.
This rate of return is subject to the performance of our related entity, Skyring Capital Pty Ltd and/or Skyring Securities Pty Ltd.
You should consider whether the investments are suitable for you or seek personal advice from a licensed financial planner before making an investment decision.
To invest in this Offer, investors should obtain and read the PDS and TMD before making an investment decision.
TMD and PDS for this product are available from our website or request a copy by contacting us on 1300 73 72 74 or request one from your Financial Advisor. Investments may only be made by completing the application form attached to the Product Disclosure Statement or via our online application service.
Skyring Asset Management Limited ACN 156 533 041 holds Australian Financial Services License (AFSL) 422902. Skyring has registered the Skyring Fixed Income Fund ARSN 622 775 464 with the Australian Securities and Investments Commission (ASIC). Skyring Asset Management Limited ACN 156 533 041 AFSL 422902 is the issuer and manager of the Skyring Fixed Income Fund ARSN 622 775 464. Skyring has registered the Skyring Platinum Fixed Income Fund ARSN 646 317 982 with the Australian Securities and Investments Commission (ASIC). Skyring Asset Management Limited ACN 156 533 041 AFSL 422902 is the issuer and manager of the Skyring Platinum Fixed Income Fund ARSN 646 317 982.
Withdrawal rights are subject to liquidity and may be delayed or suspended. See PDS for more information.
Skyring’s address is Level 2, 2 Gardner Close, Milton, QLD, 4064. Our reply-paid postal address is Reply Paid 88076, Kenmore, QLD 4069. You can contact us by telephone on 1300 73 72 74 or via email at investor@skyring.com.au.
