Market & Portfolio Update - May 2025
The global share market (represented by the MSCI World Gross Index) was up +5.3% in NZ dollar terms during May, as consumer sentiment improved and trade tensions eased. Progress in US trade negotiations with the European Union and a temporary delay to planned tariff hikes reduced fears of a global recession and fuelled broad-based gains. While the information technology sector was one of the best performing US sectors, the rally also extended to cyclical sectors such as industrials and consumer discretionary.
The Reserve Bank of New Zealand (RBNZ) cut the Official Cash Rate by 0.25% to 3.25% during May, as largely expected by the market. The RBNZ noted they remain confident the inflation outlook is benign and are well placed to respond to developments as they unfold. Similarly, the Reserve Bank of Australia cut their cash rate in May by 0.25% to 3.85%, as anticipated.
The NZ government released Budget 2025, which contained few surprises from a macroeconomic perspective. The flagship policy for the Budget was a new rule allowing businesses to write off 20% of the value of new assets – such as machinery, tools and equipment – from their tax bill in addition to regular depreciation.
Disclaimer: This article has been prepared for the purpose of providing general information, without taking into consideration any particular person's objectives, financial situation or needs. Any opinions contained in it are held by the author as at the report date and are subject to change without notice.
When One of Your Best Starts to Fade
Presenteeism is costing New Zealand businesses far more than sick days ever will, not just in productivity, but in morale and long-term team wellbeing. Here’s what it looks like, why it’s happening, and what employers can do to meaningfully support their people.
Women, Money, and Control. Rewriting the Rules.
While women now make up nearly half of New Zealand’s workforce and account for over 60% of university graduates, many still feel disconnected from their personal finances. Career success does not automatically translate to financial confidence, and too often, women are juggling high-pressure roles while also carrying the weight of outdated expectations and invisible responsibilities.