Global stock markets slipped on the first day of the quarter and overall markets appear to be struggling to find a clear direction.
Looking ahead to the second quarter of 2017, analyst and investor focus is turning to whether political developments will cloud the brightening global economic outlook. President Donald Trump’s setback on his flagship health-care bill has cast a shadow on his broader fiscal agenda, while French elections could be a litmus test for the rise of European populism.
While mild profit taking saw the Australian market retrace on Friday, the month of March saw the Australian market (measured by the ASX200 index) rally +2.7%. At the same time the NZ market (measured by the NZX50 Index) ended 0.4% higher. This continued the recent trend of the ASX playing catch up with the NZX. Given the NZ market remains close to all-time highs and the recovery in mining stocks on the ASX, we had expected and continue to expect the NZX to lag the ASX in 2017.
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Stock Markets, Simplified.