Kapiti Financial Advice Limited – KiwiSaver and Investment
October was characterised by US-China trade tensions and increasing concerns over the sustainability of the AI investment boom. Nevertheless, global equity markets demonstrated resilience, buoyed by strong corporate earnings, central bank’s interest rate cuts, and the prospect of increased government spending in Japan and Europe. New Zealand’s sharemarket rose 1.9% in October, boosted by lower … Read more
Global equity markets moved higher in September on better-than-expected US economic activity data, AI optimism, and a reduction in the US federal funds rate. Global bond markets benefited from the lower federal funds rate and longer-term interest rates fell on soft US employment data. The New Zealand sharemarket moved higher on improved investor sentiment as … Read more
Global sharemarkets rose 2.2% in July. US markets led the way on favourable corporate earnings updates, particularly better than expected profit updates from the technology giants Microsoft, Apple, Alphabet, and Meta. Microsoft’s value rose to over US$4 trillion following its profit update. Apple reported strong revenue growth, helped by consumers rushing to buy iPhones ahead … Read more
A calming of trade tensions between the US and China, a quick resolution to the Israel – Iran conflict, and the prospect of the US Federal Reserve (Fed) cutting interest rates allowed US share markets to rise in June. As the year progresses US policy uncertainty is expected to diminish as the Trump administration focusses … Read more
Global financial markets were calmer in May, following extreme volatility in April. The US S&P 500 Index led global sharemarkets higher, gaining 6.2%. There is a risk that no clarity is gained on the outcomes of trade negotiations by the end of the year. It is also possible that Trump will persevere with his Liberation … Read more
Global financial markets experienced a very unpleasant start to April as US President Donald Trump unveiled larger than expected “reciprocal” tariffs on countries around the world. As the month went on things got better. Global markets stabilised and recovered after Trump called for a 90-day pause for the reciprocal tariffs. In the final wash, Global sharemarkets … Read more
Uncertainty regarding US trade and tariff policy is likely to continue for some time, which will be unsettling for markets. Expect a period of back-and-forth negotiations which may bring further positive surprises for markets. Other developments may also bring relief for global equity markets, including: Central banks continuing to reduce interest rates, particularly in Europe, … Read more
Better than expected US inflation data, the ongoing resilience of the US economy and solid corporate earnings results provided support for the US market in January. This was despite uncertainty regarding the impact of Chinese AI startup DeepSeek and President Trump’s plans to apply tariffs on imports. Providing support for the outlook, the Fed has … Read more
November was another strong month for sharemarkets which set aside geopolitical events (the ongoing war in Ukraine and the escalation of conflict in the Middle East) in favour of a settled election outcome in the US and the prospect that inflation is easing. The US sharemarket has focused on Trump’s business friendly policies of lower … Read more
A small correction in global share markets in October followed a dramatic rise in longer-term US interest rates. Global bond yields moved higher on better-than-expected US economic data and a focus on the growing size of America’s national debt. Stronger than forecast US economic data was one of the reasons why US longer-term interest rates … Read more