Markets continued to make gains in September

Select Wealth Management – Monthly View – October 2025

Global equity markets moved higher in September on better-than-expected US economic activity data, AI optimism, and a reduction in the US federal funds rate.

Global bond markets benefited from the lower federal funds rate and longer-term interest rates fell on soft US employment data.

The New Zealand sharemarket moved higher on improved investor sentiment as investors focused more on the earnings growth in the years ahead, rather than on the trough in earnings currently. Listed property continued its outperformance of the broader market.

The Australian sharemarket fell slightly, impacted by higher than expected inflation which negatively impacted investor sentiment.

The New Zealand and Australian financial markets are well placed relative to the rest of the world in the current uncertain global economic environment and will benefit from further reductions in short-term interest rates.

Returns from cash like investments are likely to trend lower given the interest rate reductions undertaken by the RBNZ.

Select Wealth Management’s Monthly View (October 2025) is available at this link.