Financial Markets Wrap

BNZ Financial Markets Wrap

• Global equities plunge; Risk appetite index down to a multi-year low
• NZD underperforms alongside other commodity currencies and risk assets
• NZ rates down to multi-year lows

NZD Recovers Strongly in November

• The NZD bounced back strongly, up 5½% for the month
• Supported by optimism on US-China trade relations, a less hawkish Fed outlook, and positive domestic data
• NZ rates higher against a backdrop of lower global rates

NZD Resilient In October As Equity Markets Tumble

• Global equity markets tumbled in October as risk appetite collapses
• Against that backdrop, the NZD was resilient, down only 1½%, while the TWI was flat
• US Treasuries weren’t a safe-haven as rates rose across the curve, while NZ rates fell