Investments
Global equities and fixed income markets posted positive returns in November, driven by the strong performance of US share markets following Donald Trump's decisive victory.
In October, both stocks and bonds lost value. However, US stocks did better than international stocks and emerging market stocks.
During the month, the US Federal Reserve (Fed) lowered interest rates by 0.5% due to weaker economic data, which included modest growth in non- farm jobs and a limited number of job openings.
In August, the market became more volatile as investors dealt with concerning economic data from the US.
Global equity markets had a volatile but positive September quarter, returning +4.4% in local currency terms.
July was a significant month for markets, as the all-time highs we've seen throughout 2024 came to an end.
In June, global equities continued to rise. This was due to strong corporate earnings and progress in controlling inflation.
In May, strong corporate earnings and positive economic data contributed to the rise of both equities and fixed income investments.
Global equity markets continued their positive run from the previous quarter, returning 10.1% in local currency terms (15.2% NZD terms) over the March quarter, and reached a multi-year high.
In April, the rally in equities came to an end. This was due to persistent inflation and a sharp slowdown in US GDP growth, which weighed heavily on market sentiment.
In March, investors who remained optimistic were rewarded as stock markets continued to rise despite an increase in US inflation for the second consecutive month and a slowdown in consumer spending.
February was a remarkable month, with strong economic data and positive earnings reports leading to the Standard and Poor’s 500 (a stock market index that tracks the performance of 500 large-cap U.S)
Global equity markets[1] rebounded from the previous quarter and returned 9.8% over the December quarter.
In 2024, the share market had a strong start, with equities (shares) continuing to rise in value. However, fixed income assets (such as bonds) struggled to keep up.
In 2023, global stocks and bonds had a strong end to the year, with prices rising throughout the final month.
In November, both stocks and bonds had a strong recovery after a period of uncertainty. This was mainly due to the US Federal Reserve’s decision to keep interest rates unchanged.
US interest rates are likely to remain higher for a longer period owing to stronger than predicted US GDP and employment growth.
Most global equity markets gave up some of the year-to-date gains with a return of -2.6% over the September quarter.
An investor labelled “September Effect” was possibly a cause for the negative share market performance during the month, as stock returns fell back further and bond yields rose once again.
As we’ve seen in the past, when China experiences economic turmoil, the rest of the world is likely to feel its effects.
With the often discussed ‘soft-landing’ scenario becoming more of a possibility, investors may have found themselves in an unlikely bull market.
In June, global share markets showed strength with returns largely driven by players in ‘big tech’ alongside consumer discretionary, industrials and the materials sector.
Markets got off to a strong start in January as investors became more optimistic about the prospects of slowing inflation.
Global share markets experienced a negative performance this month as investor sentiment was dampened by concerns over US debt ceiling negotiations.
Despite concerns about a possible recession, investor sentiment remained largely positive in April. Investors were initially spooked as minutes from the US Federal Reserve’s (‘Fed’) March meeting.
Global share markets were positive despite the turmoil that engulfed the banking industry.
Investor skepticism over intentions to fight inflation, led to a month of mostly declines in global share markets.
While the volatility remained elevated in financial markets over the December quarter, bonds and equities delivered positive returns, recouping some of the losses experienced earlier in the year.
Global share markets started the New Year with a bang, showcasing a strong rally off the back of a weak December.
December saw global share markets retreat from advances made in November, continuing their recent ‘see-sawing’ pattern. Fears of a recession and earnings risks remained.
Global share markets continued to deliver positive returns in November, which was a result of better than expected Consumer Price Index (‘CPI’) readings in the US.
October was a positive month for investors, as we saw share markets recovering.
The key story for the September quarter was the pronounced tightening of financial conditions driven by expectations for a more aggressive global rate hike cycle.
Global share markets continued their decline in September, with the S&P 500 index suffering its worst one-day sell-off since June 2020.
After a rebound in July, which continued into early August, global share markets saw a broad-based sell-off following US Federal Reserve (‘Fed’) Chair Jerome Powell’s remarks at the Jackson Hole.
Global share markets experienced a significant rebound in July, after the June lows.
Both for the June quarter and year-to-date, what has been most challenging for investors has been the positive correlation between risk assets (equities) and normally defensive bonds.
The June quarter was characterised by sharp declines and intense volatility across both bonds and equities, with cash the only asset class to deliver a positive return.
The Defensive, Moderate Balanced, Growth and High Growth funds in the Scheme have exposure to bonds and shares.
Since the turn of the century, stocks and bonds have maintained a persistently negative correlation.
Global share markets suffered another negative month as a slight rebound experienced at the end of May faded.
Global share markets experienced another difficult month, as markets continued to digest a fast changing economic environment. With weaker than expected global activity in April.
Global equity markets had their most difficult month since March 2020 as the confluence of global central banks tightening monetary policy, economic growth momentum fading and a challenging corporate.
We saw ‘lift-off’ in March as the Federal Reserve (the Fed) raised the federal funds rate (the target rate that banks pay to borrow from each other on an overnight basis).
“There is no purgatory for war criminals - they go straight to hell”, Ukraine’s UN Ambassador Sergiy Kyslytsya said to his Russian counterpart at a United Nations Security Council meeting.
The start of 2022 was a volatile month for equities. Inflation remained at multi decade highs as a competitive labour market and soaring oil prices sustained pressures.
Risk asset returns were generally positive in the fourth quarter of 2021, although with some divergence at the regional level.
Financial markets finished the year and the month of December on a strong note despite being disrupted by COVID-19.
Financial markets ended the month of November on tumultuous footing as rising hospitalizations in Europe due to the Coronavirus alongside the new Omicron variant of the Coronavirus.
Global equity markets rebounded in October after last month’s rout. Inflation, monetary policy tightening and supply chain woes continued to weigh on economic activity.
While the world grapples with the COVID-19 delta variant, there have been signs of life returning to some form of normal.
September proved to be a difficult month for Global Equity markets as a slowing global economy, worsening supply chain and the potential Evergrande bankruptcy in China dented investor sentiment.
In August, the global reopening continued, with a number of countries further lifting pandemic restrictions. This is despite the Delta variant continuing to spread and daily cases picking up across
The global economic recovery remained strong in July as the Coronavirus vaccination roll-out continued. This was somewhat tempered by the spread of the Delta variant of the virus.
Global Equities finished the month in positive territory after what was one of the strongest starts to the year since the Dot Com bubble in 2000
Global equities continued their upward trajectory in May as many developed economies continued to reopen, leveraging off surprisingly efficient vaccine rollouts.
After a positive March, global share markets continued to perform strongly in April with all major markets (with the exception of Japan) showing positive returns.
Global equities remained strong through March with the global vaccine rollout giving investors confidence in the year ahead, with the MSCI World Index returning 7.3% in unhedged NZD
As we say goodbye to a difficult 2020, there are some positive signs for the global economy.
The December quarter was the third consecutive quarter where equity markets rallied from their March correction and significantly outperformed fixed income.
Global share markets finished the last calendar month of 2020 on a positive note!
November was another positive month for developed equity markets, encouraged by reported progress on trade negotiations between the US and China.
Interest rates in New Zealand and around the world are exceptionally low, and have just recently gone lower.
Equity markets failed to find their footing following the turbulence of September, with most major indices experiencing outflows throughout October.
The September quarter turned out to be a resilient quarter for risk assets.
Equity markets lost ground in September, bucking their widespread positive trajectory off their pandemic-induced lows.
Equity markets pushed higher in August, supported by continued improvements in global manufacturing data and an indication of persistently dovish central bank policies.
Global equity markets continued their strong performance in July, with a better-than-expected earnings season in the US and continued fiscal support for households and businesses.
Global equity markets extended their remarkable quarterly gains throughout June, with the NASDAQ touching record highs
Global equities climbed and government bond yields rose as the recovery in investment markets continued throughout May.
Following a strong start to the new decade, share markets around the world fell sharply from mid-February as COVID-19 spread across the globe
Despite the ongoing global pandemic, markets delivered sharply positive returns in April.
Despite the ongoing global pandemic, markets delivered sharply positive returns in April.
After touching new highs earlier in the year, global equities and other risk assets sold off sharply in February over concerns about the spread of coronavirus.
It’s a fact that investment markets are volatile. This is having an impact on In-Tandem and you may have noticed your balance going up and down.
January proved to be an eventful month; after a strong start, culminating in the signing of the phase one deal between the US and China
Progress towards achieving a Phase One trade deal between the US and China fuelled the rise,
November was another positive month for developed equity markets, encouraged by reported progress on trade negotiations between the US and China.
October delivered another positive month for global markets, with global equities rising and bond yields inching higher.
Global markets were once again able to slip into a “goldilocks” phase of accommodative monetary policy and easing trade conflict over September
August was a month marked by volatility, with equity markets struggling as investor risk appetite retreated amid fears of a global recession.
July served up more positive returns for investors despite signs of increasing market strain and a weakening global economic outlook.
June was a good one for investors with all major asset classes delivering positive returns and equities recovering from the falls suffered in May.
May dished up a rocky month for investors, reminiscent of the equity correction seen in December last year.
April continued the positive start to 2019 for investors, with equity markets maintaining their positive momentum.
March brought more good news for investors, with most asset classes again posting positive returns.
February delivered more good news to investors with most asset classes posting positive returns for the second consecutive month.
Global markets rebounded in January with all developed markets posting positive returns.
The three months to March 2018 saw a big change in market dynamics relative to the prior year, and mixed returns across the major asset classes.
Generally, people invest in bonds because they tend to be defensive assets that support portfolio returns and cash flow requirements when risky assets lose value.