Kapiti Financial Advice Limited – KiwiSaver and Investment

Monthly View – June 2024

Share Markets

Global share markets rose 3.7% in May, reverting to their upward trend

Favourable economic data in the US, UK and Europe, a successful US earnings season, and falling longer term interest rates supported the rise in global share markets.

AI remains a key feature. Nvidia’s better than expected profit announcement provided a big boost for global share markets, being used by investors as a gauge of the AI boom.

New Zealand’s share market fell -0.9%, reflecting disappointing earnings updates from several companies, echoing a challenging domestic economy.

Australian equities rose 0.9% in May primarily on global developments with domestic factors mixed.

Fixed Income / Bond Yields / Interest Rates

Global bond yields fell on favourable inflation outcomes and softer than anticipated US economic data.

New Zealand’s longer-term interest rates drifted lower on global events and despite the RBNZ policy statement indicating short-term interest rates will need to be held higher for longer.

Fixed income offers an attractive yield with the potential for capital gains from declines in interest rates.

 

Monthly_View_June_2024

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