Here's my summary of the key news overnight in 90 seconds at 9 am, including news of odd market reactions to news out of China.
The keenly awaited HSBC Flash China PMI came in late yesterday below expectations, negative and with its fourth decline in a row and an eight month low - and a faster rate of decrease. All bad. The Aussie dollar fell, and then recovered, then made substantial gains in value. The Kiwi dollar showed little impact. Shanghai wholesale rates hardly moved.
No-one seems to care. Why? Well it seems this result makes it more likely China will announce more stimulus. Go figure.
Perhaps markets should take more notice. China's rate of urbanisation is slowing, undermining a key plank for this and future year's growth targets. If both manufacturing and urbanisation keep slowing, it will be much harder for the country to achieve this year's 7.5% growth.
However, all this justifies the recent weakeness in the yuan's exchange rate
Gold fell, and it has fallen rather sharply, and is down to $1,310/oz. That is a spectacular 6% fall in a week.
And then the American markets returned from their weekend break reporting strong manufacturing expansion although at a marginally slower rate.
The eurozone PMI was also out overnight and was stable and positive, on the back of continuing good German results and surprisingly strong French results.
A couple of emerging nations reviewed official rates recently. Vietnam surprised with a 0.5% cut, and Israel made no change.
Oil prices treaded water; equities are lower in mid-afternoon trade in New York. The UST 10 yr benchmark yield is at 2.74%.
The NZ Dollar had an uneventful session overnight and starts today at 85.4 USc, although it is down against the Aussie at 93.4 AUc and the TWI is still at at 79.9.
If you want to catch up with all the changes yesterday, we have an update here.
The easiest place to stay up with today's event risk is by following our Economic Calendar here »
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11 Comments
Heard in a block of 5 radio advertisements after the 3ZB news this morning , 3 devoted to property ...
... one promising a free service to find you an investment property on zero % deposit , to assist you in paying off your personal home ...
Another spruiking a land development at Lincoln ( the place where 8 % of staff are to be " released " from their employment contracts ) ..
... and one more promising they're the best guys in town for all your construction work ...
Soon after we had back-to-back adverts from Mike Greer Homes and from Bayleys ... currently we are being swamped by house related advertisements ...
... are we in the midst of a property bubble ?
Anyone watched this?
http://metanoia-films.org/the-power-principle/
Part one on Youtube
https://www.youtube.com/watch?v=CTGDrg7T7rM
sounds like you need a slice of the dulcet tones from bush tele
http://www.abc.net.au/radionational/programs/bushtelegraph/corporate-fa…
About 70 per cent of farms are still family run by mums and dads who borrow from the bank to keep the business going.
But some argue that model is now outdated and the future lies with corporates coming in with millions to invest.
http://mpegmedia.abc.net.au/rn/podcast/2014/03/bth_20140324_1141.mp3
and the set runs for a week..
... good news , Ivan , Geoff Robinson who left Radio National this morning after 38 years on the 6-9 a.m. programme will front up the interest.co.nz 90@9 slot ...
Robinson is quoted as saying " Chaston has the better face for radio , whereas I know from experience how to carry off wearing make-up in a manly sort of way .... and how to accessorise too ."
Kim Dotcom is to list his Mega company ( formed last year ) onto the NZX by way of a reverse takeover of TRS Investments ( whose shares have skyrocketed 200 % this morning , from 0.1 cents to 0.3 cents ! ) ...
... TRS shares will consolidate 148 to 1 , and Dotcom will issue 700 million Mega shares at 30 cents , valuing the new enterprise at $ 210 million ... exisiting TRS shareholders will receive 1 % of the 700 million new shares ..
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