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
In its Annual Economic Report, the Bank for International Settlements has highlighted four pressure points for the global economy. The Bank advised that financial markets have remained buoyant, despite recent challenges associated with conflict in the Middle East, reflecting expectations that the disruptions will be short-lived and that the AI boom will continue. In its … 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
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 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
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
Following a strong start to the year, global share markets drifted lower in February, on US policy uncertainty and the fading of the AI euphoria that drove US share markets higher in 2024. US policy uncertainty means the outlook for share markets is mixed. Despite recent weak data, the US economy remains resilient, corporate earnings … 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
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