Market Overview

February was another strong month for markets with the NZX50 rising 3.8%. While this once again under performed Australia (200 Industrial Index +6.0%), it was ahead of the US (S&P500 +3.2%) and other world indices (up around 2% to 3%). Markets were generally upbeat as rhetoric from the US Federal Reserve was relatively dovish, and the trade talks between China and the US appeared to be making progress.

February was reporting season across the Australian and NZ markets, with ok results generally offset by cautious outlook statements. In Australia 28% of reporting companies beat expectations while 38% were below. Financials led the Australian market higher, as the big four banks continued their relief rally after the damp squib of the Royal Commission report late in January. Consumer Staples were the weakest, with Coles down 10.8% on softer 1H19 sales momentum.