Market & Portfolio Update - February 2023
After a strong rally to start the year, global share markets gave back some of their gains in February. Surprisingly strong economic data led investors to expect higher interest rates which weighed on equity valuations. The strength of the US labour market was particularly surprising, as the unemployment rate fell to a 53-year low of 3.4%.
The strong economic data and higher interest rate outlook saw the USD appreciate 4% against the NZD. This more than offset the decline in global share markets for New Zealand based investors.
As was widely expected, the Reserve Bank of New Zealand raised the OCR by 0.5% to 4.75%, marking the 10th consecutive increase in New Zealand’s benchmark interest rate. Current market expectations are for the OCR to peak at around 5.5% by mid-2023.
February was a busy month for New Zealand listed companies. Overall results were mixed, with some companies’ results disappointing and others beating expectations. Auckland International Airport’s results were particularly well received, with revenue up 130% since last year, fuelled by a robust recovery in international tourism.
How $20 a Week Could Grow Into $100,000
Retirement might not be on your teen’s radar, but a small step now could mean a $100,000 future.
This article breaks down how a $20-a-week KiwiSaver contribution — started early — can quietly snowball into life-changing savings. Perfect for parents looking to set their teens up with a powerful financial head start.
Home Loan Rates Are Dropping – But Look Who Quietly Beat ANZ to the Punch
There’s no denying it: after the Reserve Bank’s OCR cut last week, interest rates are finally starting to fall – and fast.
ANZ made headlines with a sharp round of fixed rate drops this week, bringing its 18-month special down to 4.89% and its one-year fixed rate to 4.95%. That’s the lowest ANZ’s fixed rates have been in over three years, and a welcome reprieve for buyers and refixers alike.