GoalsGetter Monthly Commentary June 2026
Q2 2026 saw the strongest quarterly return for global equities since the Q2 2020 Covid rebound. Following the drawdown in March on the Middle East conflict, the global equity market rebounded strongly in April on increasing prospects for a truce or de-escalation. While a long-term truce was not agreed, and hostilities occasionally increased, equity markets continued to perform strongly for the remainder of the quarter.
The MSCI ACWI (NZD Hedged) was down very slightly for June, but up 14.5% for the quarter. The NZ Dollar was weaker against all the majors over June, and slightly weaker over the quarter, meaning returns for the MSCI ACWI (in NZD terms) were stronger than fully hedged - up 4.4% for the month, and up 15.3% for the quarter. Global bonds also delivered solid returns. Yields remained relatively stable even as inflation readings remained uncomfortably high from higher energy prices. Global bonds (hedged to NZD) were up 0.3% for the month of June (+1.0% for the quarter) and NZ bonds fared even better than their global counterparts - up 1.2% for June and up 2.8% for the quarter.
Economic data continued to paint a mixed picture in many countries. US economic data remained resilient, and this combined with some more hawkish rhetoric from the Federal Reserve contributed to a stronger US Dollar. Other central bank activity saw hikes from the European, Japanese and Australian central banks in an effort to keep inflation in check. First quarter earnings season delivered strong earnings growth in most regional markets around the world. Forward guidance was also positive leading to an upgrade to consensus expectations of earnings growth for the remainder of the year.
Information Technology was the standout sector by a large margin over the second quarter. Energy was the laggard as oil prices fell from elevated levels back to below U$80 per barrel. On a regional basis, emerging markets were again well ahead of their developed markets counterparts, in large part due to the huge exposure the Taiwanese and South Korean markets have to semiconductor companies.
