Weekly update: Markets steady as investors digest policy signals, earnings and rate outlook

The week in markets

Markets were fairly steady this week, with investors taking a breather while digesting interest rate expectations, policy headlines, and earnings updates. While the overall moves were small, there was plenty happening under the surface as different sectors reacted to shifting economic signals.

United States

US markets were mostly sideways, with energy and value stocks performing well, while some areas of technology and growth cooled slightly.

What stood out:

• Ongoing uncertainty around when interest rates might start to ease

• Increased focus on domestic energy and infrastructure

• Investors favouring established, profitable companies over higher-risk names

👉 KiwiSaver takeaway:
Most Growth and Aggressive KiwiSaver funds have a decent exposure to the US. Weeks like this show how returns often come from different parts of the market at different times, rather than one sector leading forever.

New Zealand

The NZ market remained relatively quiet, reflecting continued caution around the local economy.

Key drivers:

• Sensitivity to interest rate expectations

• Pressure on household spending

• A tilt toward defensive and dividend-paying companies

👉 KiwiSaver takeaway:
NZ shares tend to play a steadying role in diversified KiwiSaver funds, helping smooth returns when global markets are more volatile.

Australia

Australian shares had a stronger week, helped by energy, resources and the big banks.

Supporting factors:

• Ongoing demand for commodities

• Australia’s exposure to real assets

• Relative stability in the financial sector

👉 KiwiSaver takeaway:
Australian equities can add useful diversification within KiwiSaver, particularly when resource-linked sectors outperform global growth stocks.

What this means for KiwiSaver

This week was a good reminder that:

• Markets don’t move in straight lines

• Leadership shifts between countries and sectors

• Short-term noise is normal even in calm weeks

Looking ahead

Over the next few weeks, markets will continue to watch:

• Inflation and employment data

• Central bank commentary

• Company earnings

• Ongoing policy and geopolitical developments

As always, short-term market moves are better viewed as context, not a trigger to act.

Disclaimer

This update is for general information only and does not constitute financial advice. Past performance is not a reliable indicator of future returns. KiwiSaver investments are subject to market risk, and values can rise or fall.