Jobs growth in the US sags, surprises in Canada; more US companies impose hiring freezes; India cuts rates more than expected; EU retail sales rise; Australia on holiday; UST 10yr at 4.51%; gold dips and oil holds; NZ$1 = 60.2 USc; TWI-5 = 68.2

Here's our summary of key economic events overnight that affect New Zealand, with news that despite the Trump-generated spectacle of intimidation and violence in Los Angeles against immigrant communities, the economic news has been contained.

This coming week is not a big one for local data releases, but in Australia we will get updated surveys of both consumer (Westpac/MI), and business (NAB) sentiment surveys. Not a lot of change is expected in either.

There will be a June update of American consumer sentiment from the widely watched University of Michigan. And we will get CPI updates for May from both the US (expect a small rise to 2.5%, and China (expect slightly deeper deflation at -0.2%). India will also release May CPI data (expect little change).

The Chinese will also release export and import data. Japan will update its machine tool order data. And Germany will release some wholesale price data too.

Over the weekend, and in something of a relief, the US May non-farm payrolls growth came in at +139,000, little different to the expected +130,000 and only a minor retreat from the +147,000 growth in April. But that is a bit below the average for 2024 and well below the average for 2023, and the lowest expansion for a May since 2020. In data not seasonally adjusted, it was the lowest since 2016. The US labour market seems to be plateauing after a rather strong recovery in the prior four years.

Average US weekly earnings rose +3.9% in May from the same month a year ago, similar to earlier 2025 months and the same as the average for a May over the past ten years. The jobless rate was unchanged at 4.2%.

But hiring freezes and production cutbacks seem to be the themes coming out of corporate America. The landscape for reshoring isn't good, apparently.

And the data is becoming clearer that foreigners are avoiding the US as a travel destination, and not just Canadians, with anti-American sentiment on the rise in Europe too. Companies like Airbnb, Booking.com and Expedia all said that their financial results will be weaker than expected because of the softening demand.

Total US consumer credit rose by +US$18 bln in April or +4.3%, up from a +$10 bln increase in March and better than expected. So this expansion, while modest, is back to a 'normal' pace. Revolving credit (credit cards) increased at an annual rate of +7%, while nonrevolving credit (car loans and similar) rose at a lesser 3.3% rate.

There was May Canadian labour market data out over the weekend too. Somewhat surprisingly, that delivered an expansion of +8,800 jobs when a -15,000 reduction was anticipated. Even better, +57,700 new full-time jobs were added in May balanced by a reduction of -48,800 part-time jobs. So, overall a rather surprising net gain.

However, their jobless rate rose to 7%, the first time it has hit that level since 2016 (apart from the pandemic), so that probably raises the chance of a rate cut at their next review at the end of July.

In Japan, the level of central bank bond tapering continues to raise concerns and undermine demand by other potential investors. It is also raising questions about the value of the yen. There is elevated debate about the right level from here and the central bank may have to slow its tapering operation. The void their tapering is leaving is not being filled by the private sector. And that could seriously twist Japanese interest rates.

Late on Friday, the Indian central bank cut its policy rate again, with an outsized -50 bps cut to 5.5% when a -25 bps trim was expected. That makes it a full -100 bps reduction since February. They say the outsized move was required by the combination of fast- easing inflation and ongoing uncertainty surrounding global trade tensions.

The Russian central bank also surprised with a rate cut when one wasn't expected. It cut -100 bps to 20% under Kremlin pressure, and claiming that "inflation is under control".

EU retail sales for April came in surprisingly strong. They report these on a volume basis and were +2.8% higher than in April 2024. Only a +1.4% expansion was expected, and the March expansion was +1.9%. So a great result for them. Most other countries are not getting inflation-adjusted retail growth anything like this.

Today is a public holiday in Australia, so our markets will be quiet.

Meanwhile, both sides seem to be gearing up for trade talks between China and the US - in London.

The UST 10yr yield is now at 4.51%, and unchanged from Saturday, up +9 bps for the week. The key 2-10 yield curve is still at +47 bps. Their 1-5 curve is inverted by only -3 bps. And their 3 mth-10yr curve now positive at +27 bps. The Australian 10 year bond yield starts today at 4.27% and down -7 bps from Saturday at this time. The China 10 year bond rate is holding at 1.69%. The NZ Government 10 year bond rate starts today at 4.63% and unchanged from Saturday

The price of gold will start today at US$3,308/oz, and down -US$10 from Saturday.

American oil prices are holding at just on US$64.50/bbl while the international Brent price is still the same at just on US$66.50/bbl.

The Kiwi dollar is now at 60.2 USc, and unchanged from Saturday at this time. Against the Aussie we are also unchanged at 92.7 AUc. Against the euro we are still at 52.8 euro cents. That all means our TWI-5 starts today at just on 68.2 and unchanged from Saturday.

The bitcoin price starts today at US$106,270 and up +1.5% from Saturday. Volatility over the past 24 hours has been low at just under +/-0.6%.

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