Source: Radio New Zealand
The war in Iran continues to unsettle global financial markets, including New Zealand’s NZX top 50 index. Quin Tauetau
The war in Iran continues to unsettle global financial markets, including New Zealand’s NZX top 50 index, which fell 1.4 percent on Monday.
Amova Asset management’s global asset team had been briefing investors as it worked through various war scenarios, risks, and opportunities across global and local equities, as well as fixed income markets.
Amova New Zealand’s portfolio manager Alan Clarke said the impact was being felt in equity markets around the world, but also in the bond market, putting upward pressure on long-term interest rates.
He said the closure of the Strait of Hormuz had been a potential threat for decades, and its closure had proved the point for countries all around the world.
“New Zealand, thankfully, is sort of insulated from a lot of this, but not from the energy shock, if it is to play out as a big problem for the next few months,” he said, adding bigger markets had taken a harder hit than New Zealand.
“Once the conflict is over, the markets will quickly recover.
“This is a bigger short term hurdle to get over, but there’s plenty of positive news out there in the longer term as well.”
Clarke said there were a number of global companies that had been oversold in recent weeks, since the war began.
“A lot of the names that have been sort of oversold, are some really good quality businesses and a whole bunch of industries that, you know, pretty good, long-term earnings, growth outlooks and trading at valuations we haven’t seen for a few years. So that’s an opportunity.”
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– Published by EveningReport.nz and AsiaPacificReport.nz, see: MIL OSI in partnership with Radio New Zealand
