Axiome Quarterly Q2 2024

The AI boom theme continued into the June quarter.  International equities again increased, but gains were concentrated in the large cap tech sector.  Short-term credit also performed well, but elsewhere returns were negative or more subdued.  NZ and Australian equities, global small caps and international property, for example, all fell over the quarter.  As in our previous update, on the economic front the US remains a bright spot, but there are now also increasing signs of activity picking up – or at least stabilising – in other key economies and regions, including China and the EU.  Inflation has also continued to trend down globally, to the extent that some central banks have begun to cut interest rates, including the ECB and Bank of Canada. New Zealand unfortunately remains a glaring exception.  Data releases suggest that we remain in recessionary conditions, but despite this, the RBNZ has maintained its relatively hawkish stance.