Market & Portfolio Update - August 2025

The global share market (represented by the MSCI World Gross Index) was up +2.6% in NZ dollar terms in August. All eyes were on the largest publicly traded company in the world, Nvidia, as the AI chip producer released their latest earnings report, which soundly beat investors’ expectations of sales and earnings. 

Chair of the US Federal Reserve, Jerome Powell, suggested the balance of economic risks had shifted after the release of US employment data for July indicated the US labour market was slowing more than expected. As a result, the US Federal Reserve could reduce interest rates further to stimulate the economy.   

The NZX50 (index of the 50 largest listed companies in New Zealand) returned +0.9% in August. This was supported by a strong month from A2 Milk, which was up +21% after announcing the acquisition of Yashili NZ Dairy and its Pōkeno infant formula plant. 

As expected, the Reserve Bank of New Zealand (RBNZ) cut the Official Cash Rate (OCR) by 0.25% to 3.00%. However, the RBNZ now forecast the OCR to bottom out at 2.55% versus 2.85% in May. This was a pivot from May. As a result, investors are now expecting a 0.25% OCR cut in both October and February.

This article is for general information purposes only and does not constitute financial advice. The content is based on information current at the time of writing and may be subject to change.

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