Fund watch

What happened in Q3?

Here are some key themes from the third quarter of 2024:

Fed cuts rates: The Fed cut the fed funds rates by 50 basis points in September, kicking off its interest rate easing cycle by a larger-than-expected cut. The central bank said it was confident inflation was on the right path and said its focus had shifted to the slowing labour market.

“The Committee has gained greater confidence that inflation is moving sustainably toward 2 percent, and judges that the risks to achieving its employment and inflation goals are roughly in balance. The economic outlook is uncertain, and the Committee is attentive to the risks to both sides of its dual mandate”, the Fed said. The Fed’s dual mandate is price stability and to maximise employment.

Labour market softens: The Fed’s increasing focus on the labour market came after a couple of weaker than expected employment reports and a jump in the unemployment rate to 4.3% in July, its highest level in nearly three years. It subsequently fell to 4.1% in August.

Meanwhile, adding to concerns about the US labour market was news the economy created 818,000 fewer jobs than originally reported in the 12-month period to 31 March 2024. It was the largest downward revision since 2009.

US election heats up: The trials and tribulations of the US election continued during the quarter, beginning with the news that President Joe Biden was stepping out of the race and Vice President Kamala Harris accepting the party’s nomination.

The turbulence continued with two assassination attempts on former President Donald Trump, while a fiery debate between the two ended in a victory for Harris. The strong showing saw Harris move ahead of Trump in most national polling.

With about a month left on the campaign trail, both parties are making their final pitch in key battleground states in the Mid-West and across the Sunbelt.

This article has been prepared by ANZ New Zealand Investments Limited (‘ANZ Investments’) for information purposes only and it should not be treated as financial advice.

Superannuation Investments Limited is the issuer and manager of the SIL Mutual Scheme. ANZ Investments is the investment and administration manager. ANZ Investments is not an authorised deposit taking institution (ADI) under Australian law and investments in the scheme aren't deposits in or liabilities of ANZ Bank New Zealand Limited, Australia and New Zealand Banking Group Limited, or their subsidiaries (together 'ANZ Group'). ANZ Group doesn’t stand behind or guarantee ANZ Investments. Investments in the scheme are subject to investment risk, including possible delays in repayment, and loss of income and principal invested. ANZ Group won’t be liable to you for the capital value or performance of your investment.

Past performance does not indicate future performance, and performance can be negative as well as positive. This material is for information purposes only. We recommend seeking financial advice about your situation and goals before getting a financial product.

Investment and administration manager: ANZ New Zealand Investments Limited.