Market overview

Global share markets rose in November while global bonds started the month with a sell-off, before rebounding towards the end of the month. Overall, the US 10 year bond rose to 1.78%. The New Zealand share market lead the way (+4.9%), followed by the US (+ 3.6%) and Australia (+ 3.3%). Offshore markets waxed and waned through the month on news-flow (or more accurately rumour-flow) on the progress of the ‘phase one’ trade deal between the US and China. US economic data (GDP and CPI) was generally slightly better than expected lending some impetus to markets. M&A activity continued apace, with TD Ameritrade taken over by Charles Schwab (for US$26bn) and the LVMH bid for Tiffany & Co (US$16.2bn).

Australian shares started the month lower with Austrac pursuing Westpac (-10%) for breaching anti-money laundering laws, before the market bounced higher, led by the Healthcare and Resources sectors. In New Zealand, the property companies generally reported in line results with increasing portfolio valuations, while Metlifecare (+21%) suspended its nascent share buyback after it received a non-binding preliminary expression of interest from an unnamed suitor. The AGM update from The a2 Milk Company (+19%) indicated stronger than expected operating margins driven by price increases and cost control. Fletcher Building (+14%) re-iterated it remains within its construction provisions previously announced despite the fire at the Sky City Convention Centre construction site.

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