InvestNow News – 3rd April – ANZ – Weekly Snapshot

30th March

International equity markets rebounded last week, posting some record gains and easing the recent sell- off. The three major indices in the US all gained about 10% over the week, while closer to home, the NZX 50 and ASX 200 rose 3.9% and 0.5% respectively.

Government bond yields ended the week much lower as the prospect of quantitative easing began to be priced in. The US 10-year government bond yield ended the week at 0.63%, and the NZ equivalent at 1.15%

What’s happening in markets

The sharp bounce in equities was attributed to in part to optimism over further fiscal stimulus measures around the world. Most notably in the US where Congress passed the US$2.2 trillion stimulus package, which includes sending direct checks to Americans, significant loan programs for businesses, an increase in unemployment insurance programs and further hospital spending.

Also, leaders of the G-20 countries said they expect to pump a total of $5 trillion into the economy. Speaking via a teleconference the leaders agreed that sharing health data to fight the pandemic is a priority: “Combating this pandemic calls for a transparent, robust, coordinated, large-scale and science- based global response in the spirit of solidarity,” the leaders said in a statement released on Thursday.

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