The Harbour team examine market movements in the past month, and what they are watching going forward.

The Harbour team examine market movements in the past month, and what they are watching going forward.

The prospect of a near-term trade deal between the US and China deteriorated during May as talks broke down, causing bond yields to tumble and global share markets to retreat from recent highs. Falling yields saw defensive, higher yielding equity markets, such as New Zealand and Australia, outperform. And domestically, the Reserve Bank of New Zealand (RBNZ) cut the Official Cash Rate to 1.50%, citing the deceleration in global growth and uncertainty around the global outlook as key determinants behind their decision.

Global equity markets continued to strengthen in April with the MSCI World index (in local currency) returning 3.8%. Markets were buoyed by the trifecta of a strong US earnings season, signs that Chinese stimulus have had a positive economic impact and, perhaps not unrelated, eurozone growth rates coming in above expectations.

Global equity markets continued to strengthen in March with the MSCI World index (in local currency) returning 1.6%, bringing the return for the quarter to 12.6%.

Harbour Asset Management provides an update on what's happening in investment markets and the three things its watching closely.

The Australian Royal Commission will reshape the financial services industry and has significant implications, Harbour Asset Management says. The report has already had strong political support.

Changes to banking rules are set to have a meaningful impact on New Zealand’s fixed interest market in 2019

Harbour Asset Management portfolio Shane Solly looks at the reasons why have equity markets been weak, and what it means for investors going forward.

While the RBNZ expects to keep the OCR on hold through 2019 and into 2020, in their past two Monetary Policy Statements they have outlined two alternative scenarios: one with stronger inflation pressures; and another with softer economic growth.

The Harbour Outlook summarises recent market developments, what we are monitoring closely, and our key views on the outlook for fixed interest, credit and equity markets.

A muted global market reaction so far?

Harbour Asset Management provides a valuable update on the fixed interest market following the US Federal Reserve latest rate announcement this week.

Over recent years the New Zealand credit market has been going through something of a quiet revolution.

The impact of technology is one of the most exciting aspects of being a professional investor. Technology can enable a business to significantly enhance its service offering, improving customer service and hopefully making an increased profit along the way – a win-win.

Markets, both in New Zealand and globally, have experienced "goldilocks" conditions for the past five years of low inflation and solid economic growth.