Here are the key things you need to know before you leave work today (or if you already work from home, before you shutdown your laptop).
MORTGAGE/LOAN RATE CHANGES
ASB trimmed two fixed rates today. More here.
CREDIT CARD WATCH
Media reports in Australia have identified a number of main banks cutting the 55 interest-free period on a number for some credit card plans. Premium reward cards are getting that trimmed to 44 days. CBA, ASB's parent, has just made the change matching NAB and Westpac. ANZ-Australia is still at 55 days for those premium cards. But in New Zealand ANZ has always had 44 days for premium cards, like Westpac. But neither ASB and BNZ are still at 55 days here. Kiwibank's premium cards are at the shorter 44 days, unchanged. We are monitoring for changes here and will report them if they happen. Standard bank credit cards don't seem to be affected, almost all at 55 days.
TERM DEPOSIT/SAVINGS RATE CHANGES
China Construction Bank has raised most of its short term deposit rates, with its highest now 6.00% for 1 year. It trimmed its 3 and 4 year offers.
FARM SALES SLIDE
Farm sales on a slippery downward slope in March with caution seen across the country.
EXPLOITED
A Southland dairy business and its owner, an Invercargill Imam, have been ordered to pay $215,000 in penalties by the Employment Relations Authority after having been found to have exploited three Indonesian migrant workers. Of this amount, Rural Practice Ltd was ordered to pay $145,000, and business owner Reza Abdul-Jabbar must pay $70,000. Two of the three workers will each receive $10,000 of the penalties amount.
SUPPLIER PRICE PRESSUE ON SUPERMARKETS EASES
The annual increase in the average cost of goods that suppliers charge supermarkets has slowed further, with the Infometrics-Foodstuffs New Zealand Grocery Supplier Cost Index showing an average +3.2% increase in what suppliers charged Foodstuffs supermarkets for goods in March compared to a year ago. In February it rose +3.7% on the same basis. In March 2023 the rise was +10.3%.
DRAGGING AT LOW LEVEL
In Australia, February new lending data shows that the number of loans issued for the purchase or construction of a new home over the past year is holding at its lowest level in more than 20 years.
SWAP RATES RISE
Wholesale swap rates are likely to be higher today on global trends. Our chart below records the final positions. The 90 day bank bill rate is unchanged yet again at 5.63%. The Australian 10 year bond yield is up +3 bps at 4.23%. The China 10 year bond rate is unchanged again at just under 2.30% and is showing softer signs. The NZ Government 10 year bond rate is up +6 bps from this time yesterday at 4.76% and the earlier RBNZ fix was at 4.71% and up +8 bps. The UST 10yr yield is up +3 bps from this morning to 4.43% and its highest since November 2023. Their 2yr is up at 4.78%, so the curve is still inverted by -35 bps.
EQUITIES MIXED
In late trade today, the NZX50 is down -0.4%. The ASX200 is up +0.3% in early afternoon trade. Tokyo has started its week up +1.4%. Hong Kong has started up +0.7%. Shanghai opened lower but is now unchanged. Singapore is also little-changed at its open. And the S&P500 futures suggest that Wall Street will open tomorrow virtually unchanged.
OIL PRICES FALL
Oil prices are back down a shar[ish -US$2 to just over US$84.50/bbl in the US while the international Brent price is now just over US$88.50/bbl. A reported Israeli pullback in Gaza appears to have eased some tensions and is the likely reason for the price drop.
GOLD SLIPS SLIGHTLY FROM RECORD
In early Asian trade, gold is down -US$12 from this morning at US$2317/oz and just off its all-time high.
NZD HOLDS
The Kiwi dollar has held at 60.1 USc and unchanged from this morning. And against the Aussie we are a touch softer at 91.4 AUc. Against the euro we unchanged at 55.5 euro cents. This all means the TWI-5 is still at 69.2 where it was this time Friday and where we opened this morning.
BITCOIN HOLDS
The bitcoin price has risen today to US$69,606 and marginally lower (-0.1%) from where we opened this morning. Volatility of the past 24 hours has been low at just under +/- 1.0%.
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