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US jobless claims at 8yr low; ECB holds rate, warns of risks; Aussie jobless rate worries; NZ to be 'super aged'; Mexico opens its oil patch; UST 10y 2.44%; NZ$1 = US$0.847, TWI = 79.5
Here's my summary of the key news overnight in 90 seconds at 9 am, including news NZ is a country tagged as about to be 'super-aged'.
But first, American initial jobless claims came in low last week, in fact at more than an 8 year low. The trend here is quite impressive and supports the view that the US jobs market is healing in a steady way.
Across the Atlantic, the European Central Bank kept its benchmark interest rate on hold at 0.15% for another month as it looks to see how measures unveiled previously are working. Mario Draghi also said risks to the euro area’s economic recovery are increasing because of conflicts such as the Ukraine crisis.
There has been a sharp jump in credit spreads recently.
In Australia, their highest unemployment rate in 12 years has brought forward bets on an interest rate cut by the Reserve Bank as traders increasingly believe the economy will need some form of stimulus. The Aussie unemployment rate is now higher than the American one.
And ratings agency Moody's is reporting there will be 13 'super aged' nations by 2020, those with at least 20% of their population above the age of 65. New Zealand is one of them. China won't be by that date, but the report noted that China is aging very fast.
Equity markets faded today in New York and Wall Street is heading for a daily loss; UST 10yr yields fell back again to 2.44%. The oil price got down as low as US$96/barrel in the US although it is above that now, Brent is US$105/barrel. Gold however jumped again and is now at US$1,313/oz. It is curious that the oil and gold markets are going separate ways.
Perhaps one reason is that Mexico's Congress approved sweeping changes to the country's energy industry which will see private oil contracts awarded for the first time since 1938.
We start today with the NZ dollar up against the Aussie following their bad jobs numbers. We are now at just over 84.7 USc, just under 91.4 AUc. The TWI is at 79.5.
If you want to catch up with all the changes on yesterday we have an update here.
The easiest place to stay up with today's event risk is by following our Economic Calendar here »