New Zealand equities rally modestly in Q2 2026, boosting investor sentiment

New Zealand's share market posted a 5.5% gain in the second quarter of 2026, ending five years of flat performance and lifting the NZX 50 to an all‑time high on a points basis. Fund managers, including Salt Funds’ Greg Fleming, see the modest uptick as a sign of a more sustainable recovery, citing acceptable valuation levels and a modest overweighting in NZ equities. The Reserve Bank of New Zealand recently raised the official cash rate to 2.5%, with expectations it could peak around 3% as inflation eases, providing a backdrop for defensive‑growth stocks to perform.

Meanwhile, a portfolio review from ITA Wealth Management noted that U.S. equities rose about 1.4% over the week but remain confined to a consolidation range between 7,300 and 7,600 on the S&P 500. Commodities, especially oil, were buoyed by ongoing Middle East tensions, while U.S. Treasury bonds lagged. The review kept cash on hand, awaiting a clear breakout before making further adjustments.