Market & Portfolio Update - July 2024
The Global shares market had a positive month in July, gaining +4% in New Zealand dollar terms. In the US, over half of companies in the S&P500 index have released their latest earnings report, with over two-thirds beating analysts’ expectations. Ten of the eleven sectors in the US finished higher, with Technology being the only sector finishing the month lower.
US inflation crept below 3% for the first time since June 2023, breaking through the 3-4% range it has been hovering in for the last twelve months. Falling inflation and signs of rising unemployment have heightened investor expectations for Fed rate cuts in 2024 and 2025.
New Zealand’s share market had a strong month, up 5.8% in July. Many companies that are sensitive to interest rates had a strong month after the Reserve Bank of NewZealand hinted at potential rate cuts before the end of the year. While the Official Cash Rate was held at 5.50% in July, the Reserve Bank acknowledged monetary policy had significantly reduced inflation and expected it to return to within the 1-3% target range in the coming months. This was a significant change in tone and shifted many investors’ expectations of rate cuts as the Reserve Bank had considered hiking rates back in May.
Is Now The Time To Strike With Property?
With the Official Cash Rate (OCR) in New Zealand on the decline, bringing interest rates down with it, the property market is buzzing. Whether you’re a first-time home buyer, looking to refix or restructure your mortgage, or considering a home renovation, this shift could mean significant opportunities for you. Let’s break it down.
Navigating New Tax Changes: What You Need to Know
From 1 August 2024, new tax changes have come into effect in New Zealand, bringing adjustments that could impact your payslip, tax codes, and overall take-home pay. Here’s a clear breakdown of what’s changed, what to keep an eye on, and how to ensure you're set up correctly.