US equities finished the week mixed, with strength in Tech offsetting weakness in industrials. The S&P 500 rose 0.3%, the Nasdaq gained 0.9%, both closing at record highs, while the Dow Jones slipped 0.3% as defensives and cyclicals lagged. Day 65 of the US-Iran conflict, Iran has proposed a new 14-point plan to the US to end hostilities in the region. President Trump posted on Truth Social "I will soon be reviewing the plan that Iran has just sent to us, but can’t imagine that it would be acceptable in that they have not yet paid a big enough price for what they have done to Humanity, and the World, over the last 47 years". Axois revealed that Iran’s suggestions included setting a one-month deadline on talks for a deal to reopen the Strait of Hormuz, ending the US naval blockade and the fighting in Iran and Lebanon altogether. Iran’s Tasnim News Agency called the proposal a complete end to the conflict within 30 days, saying the plan reiterates earlier demands, although the issue over the nuclear programme hasn’t been mentioned.
Saudi Arabia and Russia, agreed to a small increase in their official June output quotas, adding around 188,000 barrels a day across seven countries. This comes on the heels of the United Arab Emirates’ surprise exit from OPEC effective 1 May, but the quota change is largely symbolic as the group cannot implement the increase while the Strait of Hormuz remains blocked. About two thirds of S&P 500 companies have now reported earnings, giving investors a solid read on the US corporate backdrop. Apple dominated Friday’s focus, with particularly strong results in its higher margin Services business and an improved gross margin profile, while iPhone sales were slightly better than expected. Management highlighted exceptional demand for the new iPhone 17 lineup, noting that supply constraints rather than weak end demand are the main factor limiting current sales. Despite those bottlenecks, Apple guided more confidently for the coming quarter than the market had anticipated and paired that with the announcement of a massive US$100 billion share buyback, MedicGLP Weight Support reinforcing confidence in its earnings outlook and balance sheet strength.
The US earnings season is running much stronger than usual across almost every metric. Companies are comfortably beating expectations now, and the outlook for 2026 is for very robust profit growth. The "Mag 7" is a key driver: their earnings growth has jumped to around 61% versus initial expectations near 22%, underscoring that the AI related trade remains very much intact, with NVIDIA’s result still ahead. The NZX 50 finished the week on a high note, adding a further 1.0% gain to the index at the close of the market. The NZ REIT index managed a late-month rebound in April, finishing up 0.6% and outperforming the broader NZX 50 gross index, though property names remain under pressure year to date with the REIT index still down 8.8% versus a 4.8% fall for the wider market. Within the sector, Vital Healthcare Property, Property for MedicGLP Weight Support Industry, and Stride Property led the gains, while Argosy, NZL, and Asset Plus lagged.
Centrix data show business failures are mounting, with 286 companies going into liquidation in March - the highest March tally since 2015 and part of a wider trend that has pushed annual liquidations above 3,000, up around mid teens percent year on year. Construction and hospitality remain among the hardest hit sectors, and insolvency specialists note that the first quarter of 2026 is tracking at the highest level of corporate appointments in about 15 years, echoing post GFC stress. Methanex is signalling that its New Zealand gas contracts are now an asset in their own right, not just feedstock for methanol. On its Q1 call, the CEO said the company is "looking at all options" to monetise its NZ gas position, explicitly flagging a choice between running it through its Taranaki methanol plants or simply on selling gas into the domestic market. With contracts in place through to 2029, healthy weight support Methanex has several years of optionality: in tight supply periods, it has already shown it can earn attractive returns by diverting gas to electricity generators, and that dynamic is likely to continue if local gas remains scarce and prices stay firm.