Market Update to 31 March 2021 - April 2021 - wealthpoint.co.nz - Wealthpoint Town & Country
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Wealthpoint Market Update April 2021 What happened Global bond yields continued to rise over way to ramp up fiscal stimulus. US equity the month, particularly in the US, driven by markets pushed higher on the news, while higher inflation expectations resulting from markets in Asia lagged. the reopening of economies post lockdowns. Economic data continued to exceed Oil prices reached highs not seen since expectations, with better-than-expected jobs 2019 earlier in the month, later reverting data in the US. Jerome Powell, Chairman lower. A blockage of the Suez Canal led to a of the US Federal Reserve also made short-term spike but overall the event had a comments that did not calm investors’ muted impact on oil prices over the month. inflation concerns. He said that the economic Data released showed momentum in New reopening could cause inflation to pick up Zealand property prices with the average temporarily and did not mention any plans price of an Auckland house increasing for an immediate monetary response to over $100k in the month of February alone. push back higher yields. This led to a spike in However, the government revealed new tax bond yields, with the US 10-year rising above measures on investment properties later in 1.5%. The European Central Bank (ECB), the month in an attempt to cool the local however, signalled to the market that they housing market. would increase bond buying to combat the higher yields, and the German 10-year yield March 2021 was a positive month in equity remained in negative territory. markets in New Zealand, as the NZX 50 index recovered from large losses in a select During the month, the US also passed a few stocks in February. US$1.3 trillion COVID relief bill, clearing the Prepared by Makao Investments on behalf of Wealthpoint Limited.
Wealthpoint Market Update April 2021 March 2021 was a positive month in equity markets in New Zealand, as the NZX 50 index recovered from large losses in a select few stocks in February. © Makao Investments Limited, all rights reserved.
Wealthpoint Market Update April 2021 Asset class performance to 31 March 2021 Source: Refinitiv Datastream, Makao Investments Looking back The end of March was almost exactly 20 years. In contrast, rising bond yields in line with the one-year anniversary resulted in negative performance for of the trough of the COVID-19 related defensive asset classes in the short- sell-off in 2020. And since the rebound term. New Zealand fixed income has in shares over the last year was strong, also returned negative returns over performance numbers look great the last year, which is a poor outcome relative to history, sitting comfortably relative to history. in the top 5% of outcomes over the last © Makao Investments Limited, all rights reserved.
Wealthpoint Market Update April 2021 New Zealand Dollar to 31 March 2021 Source: Refinitiv Datastream, Makao Investments The New Zealand dollar depreciated over the month against other developed markets, taking a particularly large hit when the government announced tax measures on investment properties. Over the last year, however, the New Zealand dollar has risen relative to other currencies as it rallied from lows, in line with the economic recovery and the rise in global equity markets. © Makao Investments Limited, all rights reserved.
Wealthpoint Market Update April 2021 New Zealand shares March 2021 performance, in % Over the month, Fisher & Paykel Healthcare (FPH) regained ground lost earlier in the year. Fletcher Building (FBU) continued its strong rally, having now more than doubled in price from the end of March last year. A2 Milk (ATM), continued its pretty steady declines over the recent months that were related to ongoing supply chain disruptions and negative investor sentiment. Meridian Energy (MEL) also continued to decline over the month after a sharp rally at the end of 2020. © Makao Investments Limited, all rights reserved.
Wealthpoint Market Update April 2021 Disclaimer The information in this document is provided for general information only and is not intended as advice. Past performance is not necessarily a good indicator of future returns. Data for this document has been sourced from Refinitiv Datastream, however the information contained herein is not guaranteed and does not purport to be comprehensive. © Makao Investments Limited, all rights reserved. wealthpoint.co.nz
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