US data underwhelms; airlines see good cargo growth; Malaysian fund defaults; ANZ adds more units for offloading; UST 10yr yield 1.93%; oil and gold up; NZ$1 = 68.8 US¢, TWI-5 = 71.8

Here's my summary of the key events overnight that affect New Zealand, with news that more bits of ANZ may be up for sale.

But first, there was a set of core American economic data out overnight which shows a weakening tone.

New orders for manufactured durable goods in the US in March increased +0.8% to $230.7 billion, a smaller rise than markets were expecting. Transportation equipment drove the increase. This increase, up two of the last three months, followed a -3.1% February decrease.

This data confirmed the latest factory PMI data which has recently shown an expansion that is running out of steam. On the much more important services front, the US economy is holding its own with a modest expansion still in place.

US consumer confidence, as recorded by the Conference Board index, which had increased in March, declined moderately in April.

And house prices in the US rose +5.3% in February according to the Case-Shiller Index, the same rate of increase as for the previous month. But there were some notably strong regional gains, especially in the West; Portland rose +11.9% year-over-year, Seattle +11.0%, and Denver +9.7%.

Despite these trimmed American growth data points, the world's airlines still see good trade growth in 2016 for both passengers and air cargoes.

Troubled Malaysian government investment fund 1Malaysia Development Bhd. defaulted on a series of bonds yesterday as part of an on-going dispute with the Abu Dhabi sovereign wealth fund, depressing the country’s stock and currency markets and raised concerns that their government may eventually have to spend billions to bail out the fund.

In Australia, the rumours about ANZ bank offloading parts of its Mike Smith empire are growing. First it was UDC, then stakes in three Asian-based banks, and now its discount brokerage business in Australia, E*Trade. In New Zealand ANZ has a similar business ANZ Securities, and presumably it will be in the mix for divestment too.

In New York the benchmark UST 10yr yield keeps rising and is now at 1.93%. That is seven consecutive days of rises now. We are seeing similar small regular rises in our local wholesale rates.

The oil price is up too and is now just on US$44/barrel in the US, while Brent is now just under US$46/barrel.

The gold price is up a smidge as well at US$1,242/oz.

And finally today, the NZ dollar opens little changed from yesterday, now at 68.8 US¢, at 88.9 AU¢, and at 61 euro cents. The TWI-5 index is now at 71.8, still in the range it has been in all year.

If you want to catch up with all the local changes yesterday, we have an update here.

The easiest place to stay up with event risk today is by following our Economic Calendar here ».