Market & Portfolio Update - February 2022
Global share markets fell modestly in February (3%), with uncertainty regarding Ukraine tensions weighing on the market in the lead up to the invasion. While New Zealand and Australian share markets posted positive returns, being further from the conflict and experiencing the latest financial reporting season. Overall, the financial results have been positive, contributing to the 0.7% and 2% returns for the New Zealand and Australian sharemarkets.
The conflict has put upward pressure on oil prices, with the international benchmark Brent Crude rising above USD 100 for the first time since 2014. Russia is a major oil exporter, supplying around 25% of Europe’s oil. Oil and gas have not been included in sanctions to date, and it is still in the interests of Russia’s economy to continue exporting to Europe. However, as we know, this situation is dynamic, and oil prices could rise further if caught up in the conflict.
In New Zealand, the Reserve Bank hiked the Official Cash Rate 0.25% as expected – taking the rate to 1%. The Reserve Bank’s updated forecasts now show the OCR reaching 2.6% by the middle of next year. However, this is subject to how the Ukraine invasion develops.
Home Loan Rates Are Dropping – But Look Who Quietly Beat ANZ to the Punch
There’s no denying it: after the Reserve Bank’s OCR cut last week, interest rates are finally starting to fall – and fast.
ANZ made headlines with a sharp round of fixed rate drops this week, bringing its 18-month special down to 4.89% and its one-year fixed rate to 4.95%. That’s the lowest ANZ’s fixed rates have been in over three years, and a welcome reprieve for buyers and refixers alike.
Making Sense of Budget 2025: What It Means for Your Money
Budget 2025 has landed, and with it, a sharp focus on doing more with less. Branded as a back-to-basics budget, this year’s announcement signals a disciplined approach to spending, with targeted support in areas that matter most: healthcare, education and the economy.
Whether you’re planning your next career move, growing a business or making sure your retirement savings are working hard, the Budget can have a flow-on effect. Let’s unpack what’s changed, what it means for you, and how to stay financially confident in the year ahead.