Longer term economic outlook 'doesn't look great' for everyday Kiwis as markets slump

March 10, 2020

Nigel Brunel from brokerage firm OMF, says we could enjoy cheaper petrol price in the short-term, but the long-term outlook is worrying.

As financial markets around the world fall amid the worsening coronavirus outbreak and trading expert is warning New Zealanders the medium term economic out look "doesn't look great".

The New Zealand sharemarket has fallen 5 percent overnight, a move alongside other global markets which have fallen as much as 11 per cent.

Nigel Brunel, from brokerage firm OMF, told 1 NEWS while plummeting sharemarkets will likely lead to cheaper petrol and interest rates in the short term, the longer term economic implications may not be so rosy.

“Those who have KiwiSaver equity portfolios and those with shares outright will see those portfolios drop in value … it doesn’t look great out there on the medium outlook.”

United States markets plummeted dropped seven per cent overnight triggering an automatic halt in trading for the first in over two decades.

In response to Saudi Arabia announcing plans to slash oil prices and increase production oil prices fell nearly 25 per cent to the lowest point in four years.


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