Global share markets recovered strongly in October, up 8% on average. To a large part this reflected a rebound in confidence following the declines in July and August, with economic data generally remaining on track. This was further helped by the European Central Bank fuelling expectations of more stimulus measures to come, and additional stimulus announced in China.
A solid rise in the New Zealand Dollar accompanied the gains in global share markets, with the NZD recovering from a low of 62.5c against the US Dollar to just under USD 68c by the end of the month. While the rise took some of the gloss off the underlying global share market gains, this was partly mitigated by our increasing the level of currency hedging in place at September’s lower levels. Following its rise, the current exchange rate now sits closer to our assessment of its long-run fair value. Click here to read more.
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