French runoff candidates decided; US spring house selling strong; China says fewer mortgages issued; ASIC to clamp down on cross selling; trade rhetoric changes; UST 10yr yield at 2.25%; oil down, gold up; NZ$1 = 70.3 US¢, TWI-5 = 75.2

Here's my summary of the key events over the weekend that affect New Zealand, with news ASIC is about to tighten the screws on banks cross-selling policies.

First up however, counting in the first round voting for the French presidency is underway and far-right candidate Marine le Pen looks like she will come in second behind centrist Emmanuel Macron. The have 23.7% and 21.7% of the vote respectively and face each other in a runoff on May 7. Another centrist candidate got 19.3% and the extreme left candidate got almost 19% and their supporters will now need to decide who to line up with in the second round. If the far left supporters don't vote in the same numbers, it looks like Macron will be the next president in France.

And speaking of political popularity, the latest WSJ/NBC political poll shows a clear majority of Americans think the new US president is doing a poor job. In fact, those polled want a more active government.

And staying in the US, their spring house selling season is off to a strong start. Existing-home sales rose by +4.4% to their highest pace in over 10 years. Supply shortages resulted in the typical home coming off the market significantly faster than in February and a year ago. Only the West saw a decline in sales activity in March. In fact, US mortgage rates dropped below 4% for the first time since November, providing more fuel for their housing markets.

Across the Pacific, China is claiming that the value of mortgages issued by its banks is actually declining, the result of a regulatory crackdown on over-exhuberant buying.

Moving south, the real estate froth may be easing in Australia. Auction clearance rates in Sydney eased back to 75.6% after several weekends of more than 80%, and it was a similar story in Melbourne.

The head of ASIC is raising the distinct possibility that banks may have to offer and sell products from its rivals. Under their drive to ensure customers interests are placed first, he says he will use his powers to police competition and "product intervention" could be used to ensure banks only sell products that are in the best interests of their customers – which might not necessarily be their own. And he wants new power to limit the ability of banks to "cross sell" customers additional products from by another part of the bank, a common tactic that boosts bank profits. (If this found its way here, maybe a Westpac 'adviser' would be obligated to offer an ANZ Kiwisaver option to its client? for example.) Customer-first policies are about to get new teeth rather than be bland corporate-speak, especially in Australia.

In the trade arena, the IMF and World Bank have dropped a pledge to fight trade protectionism from the closing note of their spring meetings. The IMF statement said members would "work together" to reduce global trade and current account imbalances "through appropriate policies". Meanwhile, Japan has picked up the ball and is advancing the idea that the TPP could be revived without the US. It has also rejected the idea that the US would get better trade terms from it outside the TPP than within it.

In New York, the UST 10yr yield is back up today and now at 2.25%.

Oil prices are dropping and now just over US$49.50 for the US benchmark, while the Brent benchmark is now just over US$51.50 a barrel.

The gold price is higher however, up +US$7 and now at US$1,285/oz.

The New Zealand dollar is marginally higher today at 70.3 USc. On the cross rates the Kiwi dollar is at 93.2 AU¢ but against the euro at 65.6 euro cents. The NZ TWI-5 index is just on 75.2.

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

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