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
An article on CNN advises that “Yellow lights are flashing in the most important market on the planet: The US bond market”. The yield on the benchmark 10-year Treasury, climbed on Wednesday 2nd September to the highest level in nearly three years as the Middle East conflict escalated, reinforcing inflation fears. In Germany, the 10-year … Read more
The resilience of the US economy remained a feature of financial markets during July. Economic data generally exceeded expectations, supported by steady consumer spending, a healthy labour market and ongoing business investment. The continued run of stronger-than-expected economic data has reinforced the view that the US economy remains more resilient than many anticipated at 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
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 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