Markets Catch Their Breath as Inflation & Earnings Take Centre Stage
Weekly Market Update - KiwiSaver & Investment Markets
Markets eased back this week after a strong start to the year, with investors taking a breather and reassessing inflation data, interest rate expectations, and company earnings across the US, New Zealand, and Australia.
United States
US markets were mixed as investors reacted to fresh inflation data and ongoing earnings updates.
Inflation numbers came in slightly hotter than expected, reducing confidence that interest rate cuts will arrive as quickly as markets had hoped.
Bond yields ticked higher, which tends to put pressure on growth and tech stocks.
Earnings have been mostly solid, but markets are becoming more selective. Strong results are being rewarded, while disappointments are punished.
Despite the short-term pullback, US markets remain close to all-time highs, supported by resilient economic data and continued strength in large companies.
New Zealand
The NZ market was softer this week, tracking global sentiment and higher interest rate expectations.
Investors are still watching the Reserve Bank of New Zealand, with rates expected to stay higher for longer.
Higher interest rates continue to weigh on property-linked and consumer-focused companies.
Export-exposed businesses benefited slightly from a weaker NZ dollar.
Overall, local markets remain more subdued than offshore markets, reflecting tighter financial conditions at home.
Australia
Australian shares were relatively steady, supported by the resources and banking sectors.
Iron ore prices held up, helping mining stocks.
Banks remained stable, as higher interest rates continue to support margins.
Inflation and wage data remain key drivers for the Reserve Bank of Australia’s next moves.
Australia continues to sit somewhere between the US and NZ not booming, but holding up reasonably well.
KiwiSaver Insight
For KiwiSaver members, weeks like this are a good reminder that markets don’t move in straight lines.
Short-term volatility is normal, especially when:
Inflation data surprises the market
Interest rate expectations shift
Earnings season creates mixed signals
Your KiwiSaver balance may move around more during these periods, particularly if you’re invested in growth-oriented assets. This doesn’t mean anything is “wrong” it’s simply how markets digest new information.
What matters most is that your KiwiSaver strategy is aligned with your timeframe and goals, rather than reacting to weekly market noise.
What We’re Watching Next
US inflation and interest rate commentary
Ongoing earnings results
Central bank signals in NZ, Australia, and the US
Markets remain sensitive to data, so expect continued ups and downs.
Disclaimer
This information is for general information purposes only and does not take into account your individual financial situation, goals, or risk tolerance. Past performance is not a reliable indicator of future performance. Please seek personalised financial advice before making any financial decisions.