Certus Market Update 8 April 2020

NZ GOVERNMENT’S DECISION TO LOCKDOWN EARLY IS PAYING OFF WITH A SLOWER INFECTION RATE

I hope all your families, friends & colleagues are well and managing to keep entertained during this Covid-19 lock down period. The infection rate in NZ seems to be “curving off” at the moment which is a good sign for the wider New Zealand community and economy.

There has been a significant amount of media coverage in NZ with quite a bit of “doom and gloom”, but the Government’s decision to lockdown early is paying off with a slower infection rate and only one death in New Zealand so far.

Other countries such as UK, US, Italy, France, Spain and other parts of Europe reacted slowly to the Covid- 19 virus outbreak which has meant spiralling infection rates and unfortunately significant casualties.

The financial markets have been stronger over the last 2 weeks with the NZX50 and Dow Jones recovering from the market low of Monday 23 March

In the past two weeks since our last our Certus Market Update, the New Zealand Government increased the Covid-19 alert level to “Four” to protect the wider health of all New Zealanders. This has had a significant impact on non-essential businesses and their employees. However, the financial markets have been stronger over the last 2 weeks with the NZX50 and Dow Jones recovering from the market low of Monday 23 March. Please see below the NZX50 and Dow Jones graph over the last month.

It’s very difficult to determine whether the share markets have bottomed out considering the serious ongoing Global health situation. I’m confident the Central Governments now have measures in place to tackle the Covid-19 infection, improved national health systems and implemented massive fiscal stimulus packages to help the economy through these difficult times.

Dr Shane Oliver, AMP Capital Australia Chief Economist has written an informative article –
“Coronavirus driving a recession, depression or an economic hit? Please click on the link below to read the article:

https://www.amp.com.au/insights/grow-my-wealth/is-coronavirus-driving-a-recession-depression-or-an-economic-hit
Certus really appreciate your patience and understanding during these difficult times.