Key points

  • Global share markets continued their rally in March, benefitting from confirmation of a more accommodative US Federal Reserve (the Fed) and more positive rhetoric from the trade negotiations between the US and China.
  • Global growth continued to show signs of weakness during Q1, most notably in Europe. While the US is showing signs of slowing, it looks more like a “muddle through” scenario, than a recessionary one.
  • Domestically, the NZX50 Index reached fresh highs in March, while bond yields hit record lows due to a surprise shift to an easing bias by the Reserve Bank of New Zealand (RBNZ).

Key developments

Global equity markets continued to strengthen in March with the MSCI World index (in local currency) returning 1.6%, bringing the return for the quarter to 12.6%. Markets were buoyed by a dovish statement from the Fed, whose “patient” approach is unlikely to see any rate rises for some time. A “great” trade deal has been touted between the US and China, which has breathed further life into investment markets.

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