The MarketsNZ sharemarket rebounds with Wall Street rallyNew Zealand shares bounced on Monday, following a rebound on Wall Street over the weekend on the expectation that interest rates wouldn’t go as high as some had thought. US markets rallied on Friday night – with key indices jumping more than 3% ­– as traders began thinking an economic slowdown would stop the US Federal Reserve from hiking interest rates. This pivot is counterintuitive, but a recession in the US economy might ultimately mean lower interest rates which would be supportive for heavily sold equity markets. “But the fall in rates also likely reflected the fact that markets had taken rates up too far and too fast. The NZ dollar was trading at 63.08 US cents at 3pm in Wellington, up from 62.60 cents yesterday.

Source: Stuff June 27, 2022 06:27 UTC