China disappoints but holds course; US data positive; Europe stabilises; Australia probes Fonterra, accuses Westpac; UST 10yr yield 1.70%; oil and gold higher; NZ$1 = 67.7 US¢, TWI-5 = 71.6

Here's my summary of the key events over the weekend that affect New Zealand, with news of something of a stumble in China.

China's investment, factory output and retail sales all grew more slowly than expected in April, adding to doubts about whether the world's second-largest economy is stabilising. Industrial output rose 6% year-on-year in April, compared with 6.8% growth in March, the Chinese National Bureau of Statistics said yesterday.

But their central bank said it wasn't changing policy settings, despite the slowdown.

Supporting that stance, perhaps, their real estate markets seem to be improving. Quite substantially.

The situation is more positive in the US however. American retail sales in April posted their largest rise of the year, mainly on the back of online retailing. Car sales also rose, recovering from a weak March. From a year ago, total retail sales were up +3%, with car sales up +3.1% and hardware stores up +8.2%. On-line retail was up +10.2%. Dragging the overall totals down were petrol sales which declined -9.4%. Sales through electronic store retailers were also down -2%.

And the initial estimate of economic growth in Europe is also quite positive. Germany out-performed among the majors and Spain is growing even faster. Greece is the main country not contributing to EU growth.

But in Germany, a group of professors and entrepreneurs have filed a complaint against the ECB's monetary policy at the country's top court. This complaint opens a new chapter in a long-running legal battle between Europe's central bank and groups in Germany who want to curb the bank's power.

In Australia, their competition commission told Reuters it is investigating the recent moves by both Fonterra and Murray Goulburn to cut milk prices to farmers. The reductions have cut AU$0.60 to AU$0.85 from prices paid, taking them to about AU$5/kgMS (NZ$5.40/kgMS). The Commission has said it is looking at whether the cut involves "misleading conduct or whether there are elements of unconscionable conduct".

And staying in Australia, Westpac is being sued by regulator ASIC over its manipulation iof the 90 day bank bill rate. It has been accused of some appalling behaviour. Westpac is defending its employees who are still working at the bank.

In New York the benchmark UST 10yr yield is lower yet again, now down to 1.70%.

The oil price is marginally higher today with the US benchmark now just over $46/barrel and the Brent benchmark just under US$48/barrel.

And the gold price is up fractionally as well, now at US$1,273/oz.

And finally today, the NZ dollar will start at 67.7 US¢, at 93.1 AU¢, and at 59.9 euro cents. The TWI-5 index is now at 71.4.

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

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