Equity market pullback

Key developments

For much of the year, the main theme has been global bond yields inching higher as US Federal Reserve continues normalising interest rates; while at the same time equity markets also moved steadily higher, supported by solid global growth.

However, finally in October equity markets experienced a noticeable and widespread pullback.

The New Zealand equity market (S&P/NZX 50 Portfolio Index) fell -6.3% over the month reflecting weakness in equity markets globally. The Australian equity market fell -6.1% over October (-6.5% in NZD terms).