Market & Portfolio Update - July 2025
The global share market (represented by the MSCI World Gross Index) was up +4.2% in NZ dollar terms in July as the Trump administration finalised several trade agreements, including with Vietnam, Japan and the EU. Although these new tariff rates are significantly higher than the average rate before Trump’s presidency, equity markets responded positively to the fact that the new agreements reduce the risk of an escalating trade war.
US June inflation showed an annual increase of 2.7%, which was slightly better than expected. There are early signs that tariff effects are putting upward pressure on inflation, but it remains limited so far. It’s believed the rate that companies are paying has so far been lower than the statutory tariff rate, due to inventory management and supply chain reorganisation. This means the timeline for clarity on the effects of tariffs on the economy may be pushed back a bit.
The NZX50 (index of the 50 largest listed companies in New Zealand) returned +1.8% in July. Some of this performance was aided by a strong month from the real estate sector, which is likely to be benefiting from New Zealand’s current interest rate cutting cycle.
The Reserve Bank of New Zealand (RBNZ) held the Official Cash Rate at 3.25% in July, as widely expected by the market. The RBNZ noted they wanted more clarity on economic momentum and the global outlook.
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.
Lifetime Group Limited is a licensed Financial Advice Provider. For advice specific to your situation, please speak with a Financial Adviser. You can view our Disclosure Statement here.
All investments involve risk and are not guaranteed. Any examples or projections are for illustration only and should not be relied on as advice.
Market & Portfolio Update: July 2026
Early in the month, renewed tension in the Middle East briefly pushed Brent crude oil above US$100 a barrel, which lifted energy prices and brought inflation concerns back into focus.
Lifetime Book Club: Paradox of Choice by Barry Schwartz
In The Paradox of Choice, psychologist Barry Schwartz explores a curious feature of modern life: while freedom and choice are undoubtedly valuable, there can come a point where having more options makes decisions harder, increases our expectations and leaves us questioning whether we made the right choice at all.
From what to buy and where to eat to decisions about careers, relationships and money, Schwartz looks at the hidden mental cost of constantly comparing our options – and makes the case that sometimes, simplifying our choices can leave us better off.