Global equities continued to climb higher over May with the MSCI World Index returning 1.3% in local currency terms. In contrast, emerging markets gave back some of their recent gains. The New Zealand share market gained 0.9% over the month, slightly underperforming the global market. Global bond yields ended higher for the second consecutive month, while longer term New Zealand Government bond yields followed global rates higher over the month. The New Zealand dollar closed the month lower against all the major currencies, and down against the Trade Weighted Index as declines in the Global Dairy Trade auction and the expectation of lower domestic interest rates put downward pressure on the currency.
Download the full investment brief from AMP Capital