Shane Solly: Harbour Asset Management spokesperson explains why the US share markets have picked up

US share markets have continued to pick up recently, sparking discussion among experts.

Harbour Asset Management's Shane Solly explains the factors behind the change.

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Episode Transcript

Speaker 1 (00:09):
You're listening to a podcast from News talks'd be follow
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Heller Duper See Ala.

Speaker 2 (00:18):
Chain, Solly Harbor Asset Management is with us.

Speaker 3 (00:20):
Hey Shane, Yeah good, Yeah, how you go.

Speaker 2 (00:23):
I'm very well, thank you mate. So we've seen a
little bit of a rally, have we in the US
share markets? What's going on here?

Speaker 3 (00:28):
Yeah? Look, on Friday we saw the the US share
market close up on one percent on the day, So
we've seen quite a good rally back to where we
were in February. Some upbeat news about jobs in the
US narrowly beating expectations, a phone call between mister g
mister Trump that saw some sentiment improvement, and then we've
seen mister Trump pushing the US fit to reserve the
cut rates again. Sydney markets picking up on that. Over

(00:50):
the weekend, we've seen some more discussion about US China
trade talks being back on, particularly focusing on rares. Some
comments just in the last twenty four hours about from
a Trump economic advisor that they're very comfortable with a
trade deal closing with China on Monday. So what happens tomorrow?
Newsy on time. New Zealand market didn't really take debit

(01:13):
and New z Own dollar up sort of round sixty
point three seven against the US dollar. He's earned tenure bonds,
government bonds pretty flat four point six five, and our
shear market down point two percent, so we didn't really
follow on.

Speaker 2 (01:28):
Shane, did you take Paul Conway's comments to mean that
there would be some rate cuts coming?

Speaker 3 (01:33):
Well, the market certainly did, right, mister Conway. He said
a couple of interesting things. Firstly, he said the labor
market may be softer than the jobless market rates to douce,
so there could be about underemployment, people not working the
same now as they were. He then went on just
underlying inflation continues to ease, so those are sort of
tonally talking about maybe they could talk about more cuts.

(01:55):
So this is reserve bank speak for maybe we could
think about it. He did say we've got a long
running productivity problem, so I think that's true, but we
definitely need in the near to bit of abjection of
some more support. So you know, we you did see
in miss markets take a bit of a bait on
that one.

Speaker 2 (02:11):
Hey, what do you make of your Brisco's replacing the Warehouse.

Speaker 3 (02:16):
Yeah, so on Friday night, Insidys fifty v S and
P Interdicts fifty benchmark, this is the main benchmark. Mini
QP server funds follow announced that Bresco Group we will
replaced the Weeehouse Group based on trading volumes and the
market capitalization of two businesses. And this will all be
pushed through on Thursday the nineteenth, that day before Mattawiki.
And it means that many funds that follow that Insidacy fifty,

(02:38):
the SMP Indidacy fifty benchmark, they'll need to buy shares
and Brisco and sell shoes and Warehouse. So today we
saw the Brisket cheer price up nine point five dollars
forty and the Warehouse Group cheer price fell three point
two percent to ninety one cent. So somebody might have
got a bargain. I'm not sure which one.

Speaker 2 (02:57):
Thanks very much, Shane, I appreciate it. Shane Sally Harbor,
Asset Management.

Speaker 1 (03:00):
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