Global equities delivered positive returns over the month of August. It marked the sixth month this year that emerging markets have outperformed their developed market counterparts, outstripping them by 7% year-to-date. The New Zealand share market marginally outperformed the global market, with the S&P/NZX 50 Index returning 0.7% over August. Global bonds were mixed over the month, with movements in yields dominated by the regions’ central banks. Similarly, New Zealand bond yields were mixed over August as the RBNZ cut the Official Cash Rate to a record low of 2%. The New Zealand dollar continued to rally despite the RBNZ not meeting market expectations of a more aggressive interest rate track..
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