31st May 2019

Market overview

The NZ share market rose 1.0% in May and Australia rose 1.7%, despite weak markets overseas. The US market was down -6.4%, Germany -5.0%, France -5.3% and Japan -7.4%. Bond yields dropped substantially, with the US 10 year bond falling to 2.1%, the Australian 10 year bond to 1.5%, and the NZ 10 year bond is around 1.7%. Global markets were weak, and bonds strong, on the return of trade wars. On May 5th the USA surprised the market with a lift in tariffs against Chinese goods. China eventually responded in kind. Then, to finish the month off properly, the USA announced on May 30th a 5% tariff on all imports from Mexico (although this latter appears like it may not actually proceed).

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