Monthly report for the period ending 28 February 2026

New Zealand’s share market had a good month in February, rising by 2.3%, outperforming global shares who gained 1.0%. The strongest sectors were consumer staples (everyday goods people regularly buy) and industrials (companies that build and maintain infrastructure) while materials (made up of companies producing raw resources like metals and chemicals), lagged behind. Employment grew modestly, although unemployment ticked up slightly as more people entered the workforce and the participation rate grew. The New Zealand dollar stayed mostly steady but weakened against the Australian dollar as the Reserve Bank of New Zealand’s (RBNZ) decision to hold rates steady contrasted with the Reserve Bank of Australia’s rate hike. Looking ahead, consumer confidence remains strong, and lower interest rates should help businesses invest and households spend more. Important economic data, like price indexes and Gross Domestic Product, which is the total value of all goods and services produced in a country over a specific period, figures for late 2025, are expected soon and will provide more insight into the economy’s health.

Global share markets rose modestly by 1.0% as the materials sector led gains, helped by rising commodity prices, which is basic good, raw material, or agricultural product that is traded, bought, and sold in bulk, typically with minimal differentiation between producers, while utilities also performed well. Emerging markets outperformed developed rising 6.3%, supported by attractive company valuations. Most major central banks, including New Zealand, the Bank of England and European Central Bank, held interest rates steady, but Australia raised rates by 0.25% to 3.85% due to inflation concerns.

Geopolitical tensions in the Middle East are affecting global oil prices and creating market volatility, causing higher oil prices for New Zealanders, and increasing costs for businesses and consumers alike. Despite these risks, the positive global economic outlook supports New Zealand’s recovery, with strong consumer confidence and steady employment growth.

Overall, New Zealand’s economy is on the mend, with steady jobs, a rising share market and stable interest rates for now. However, global events like tensions in the Middle East and changes in other countries’ interest rates can affect New Zealand’s economy and your everyday expenses, especially fuel and imported goods.

Significant Developments Include:

• Geopolitical tensions escalated after US and Israeli strikes on Iran, including the death of Iran’s Supreme Leader, raising worries about oil supply disruptions through a key shipping route that handles about 20% of the world’s oil.
• The RBNZ decided to keep interest rates steady at 2.25%, showing confidence that inflation will ease back to around 2% over the next year.