Here's my summary of the key news over the weekend in 90 seconds at 9 am, including news of a big week of data and some key decisions.
But first, over the weekend we learned that US retail sales rose by 0.6% in August, compared with the previous month, driven by car sales and healthcare, data that was better than expected. On a yearly basis, they rose by 5%. Retail sales account for 70% of the US economy and the data points to stronger overall economic growth. July's figure was also revised upward.
However, China's value-added industrial output expanded just 6.9% pa in August, down from the 9% growth in July, the National Bureau of Statistics said on Saturday. That is the weakest growth in six years.
There are important votes this week in Sweden, in German state elections, in Scotland, and of course our own general election this Saturday. Almost all are too close to call.
Also this week, we get NZ current account data and the Q2 GDP outcome. And we get the US Fed's latest review. Markets seem to be expecting a bullish review, thinking that interest rate rises in America may come sooner than they were earlier expecting.
Supporting that view, US consumer confidence is strong. The latest University of Michigan index of consumer sentiment survey came in way above expectations and at a 14 month high.
Also bolstering that view, UST 10yr benchmark bond yield rose sharply on Friday in New York and closed at 2.61%. This is a three-month high.
The price of oil however has fallen further. The US oil price is now just on US$92/barrel and the Brent benchmark is now under $97/barrel. Gold is also down a lot, now at just US$1,227/oz and that is near its low for the year.
We start the week with our currency lower against the US dollar and the euro, but still level-pegging against most other currencies. We are now just on 81.5 USc, back up over 90 against the Aussie at 90.1 AUc, and the TWI is at 78.2.
If you want to catch up with all the changes on Friday 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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