Kapiti Financial Advice Limited – KiwiSaver and Investment
The broad theme is that rising interest rates have put pressure on bond and share markets in recent weeks. This is providing a challenge for funds across the board: The US share market has plateaued since early August, with rising bond yields creating headwinds for shares/equities. Nevertheless, the US market has been supported by technology … Read more
Global equities rose during August, supported by exceptionally strong corporate earnings and resilient economic activity. This occurred despite ongoing tensions in the Middle East and upward pressure on interest rates. The global second quarter earnings season has been significantly stronger than expected and remains an important support for equity markets. In the United States, the … Read more
Global sharemarkets moved higher through June, rounding out a strong June quarter and first half of the year. Markets have continued to look through the geopolitical headlines – the ongoing conflict in the Middle East, concern over oil supply, and uncertainty around global central bank policy. Instead focusing on better-than-expected US economic activity, stronger US … Read more
Global sharemarkets moved higher through May on resilient corporate earnings and the prospect of an end to the conflict in the Middle East. A strong US first-quarter earnings season saw global sharemarkets remain more resilient than the economic headlines alone might suggest, led by technology companies. Results from Alphabet, Meta, Amazon, Microsoft, and NVIDIA reinforced … Read more
The escalation of tensions in the Middle East is a continuation of geopolitical events since the beginning of the year. Nevertheless, global share markets rose during February. Emerging markets, Europe and Japan were once again among the better performing regions. The US sharemarket was weighed down by uncertainty surrounding the larger technology companies as concerns … Read more
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 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
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
Melville Jessup Weaver have released their MJW Investment Survey March 2025. The survey discusses the impact of the US trade policy which caused understandable nervousness in the first quarter. Market volatility began to rise around the end of February and peaked for the quarter in early March. Subsequent events in early April, following President Trump’s … 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