Monthly View.

After a torrid December, January provided some relief for investors on summer holiday.

Sharemarkets had a mixed month in November, with NZ and US indices posting modest gains, while Australian and UK indices fell. US long-term interest rates eased, oil prices plummeted over 20%, while continuing trade tensions and Brexit concerns plagued financial markets through most of the month.

Stock markets ended October on a positive note, however, that was not enough to stop the month from being one of the worst for equities since the global financial crisis. Markets were weighed down by investors’ jitters over rising interest rates, the slowing Chinese economy and uncertainty about global trade tensions.

Given the extended period of strength from investment markets, it is important that the share exposure levels in clients’ portfolios are appropriate for their risk tolerance.

Given the extended period of strength from investment markets, it is important that the share exposure levels in clients’ portfolios are appropriate for their risk tolerance.

Despite the recent escalation in trade tensions, markets in July posted solid gains (the US sharemarket in particular), supported by strong economic data and positive corporate earnings.

Global stock returns were flat overall in June, after staging some recovery in the previous two months, but still below the peak levels reached in January. Lingering trade jitters continue to weigh on market sentiment, even though broader fundamentals still appear supportive.

Global equities continued their rebound in May, after good gains in April, as interest rate and geopolitical risks eased somewhat, and the tail end of the US corporate earnings remained strong.

Global equities rebounded in April, partly unwinding the declines from the previous two months. The rebound came despite a lift in global bond yields and reflected ongoing good growth in earnings.

Sharemarkets weakened for a second consecutive month in March, eliminating gains recorded in January. Major indices fell, the S&P 500 returned -2.69%, the FTSE 100 fell -2.54%, and the ASX 200 was down -4.27%.