US JOLTS higher; US inflation expectations dip; Canada building permits jump; China trade surplus swells; Wall Street on a tariff relief rally; UST 10yr yield at 2.14%; oil and gold down; NZ$1 = 66.1 USc; TWI-5 = 70.8

US JOLTS higher; US inflation expectations dip; Canada building permits jump; China trade surplus swells; Wall Street on a tariff relief rally; UST 10yr yield at 2.14%; oil and gold down; NZ$1 = 66.1 USc; TWI-5 = 70.8

Here's our summary of key events overnight that affect New Zealand, with news equity markets are in their expected relief rally following the US-Mexico tariff suspension.

But first, US labour market data released overnight showed that while job openings fell slightly in April, a surge in hiring to a record high suggested strong demand for workers. But we need to be aware; this is April data and the bite of the trade slowdown didn't happen until May and June.

And American inflation expectations just keep on falling, a sign the Federal Reserve will be watching.

In Canada, they had a surge in approved building permits, taking it them to record highs.

China’s exports clocked up a small gain last month but imports fell sharply. Reduced oil imports, especially from Iran, was the reason. Their trade surplus swelled to almost US$42 bln May, more than triple April’s level. Their sensitive exports to the US declined -4.2% year-on-year but imports from the Americans dropped -27%. The Americans will be feeling that.

And China's foreign exchange reserves rose again, even if only by a small amount. They now exceed US$3.1 tln. This is their highest level in nine months.

Japan's economy grew at a +2.2% annual rate in the March 2019 quarter, better than preliminary data showed. A rise in capital investment is behind the improvement.

In the UK, they posted a larger an expected fall in April GDP. Brexit uncertainty got the blame there.

Equity markets are positive in trading today. Wall Street is up +0.7% on the Mexico trade relief rally and this follows a similar rise on European markets earlier. Yesterday, Shanghai was up +0.9%, Tokyo was up +1.2% and Hong Kong boomed (despite the local protests), up +2.3% in an impressive show.

The upcoming G20 meetings at the end of the month in Japan are looking like the next major market risk event, based on comments by the US President overnight.

The UST 10yr yield is bouncing back, up +6 bps and now just on 2.14%. Their 2-10 curve is little-changed at +24 bps and their negative 1-5 curve is at -13 bps. The Aussie Govt 10yr is at 1.48% and up +2 bps. The China Govt 10yr is up +1 bp to 3.27%, while the NZ Govt 10 yr is up +4 bps, now at 1.77%.

Gold is lower today giving up some of the weekend's big gains and now just on US$1,328/oz. That means it has fallen -US$12 overnight.

US oil prices are softer today. They are now just under US$53.50/bbl. The Brent benchmark is now at US$62.50/bbl.

The Kiwi dollar has stepped back a little this morning and is now at 66.1 USc and that is a -½c fall overnight. On the cross rates we are softer too at 95 AUc. Against the euro we are down to 58.4 euro cents. That pushes the TWI-5 down to 70.8.

Bitcoin is up, today at US$7,929 and a +3.5% rise overnight. The bitcoin rate is charted in the exchange rate set below.

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

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We are in trouble , 'solutions' are very predictable
https://www.youtube.com/watch?v=AdBJNnfH6mQ

yip ... (New) Debt holds up commodity prices, so ever weaker/lower commodity prices is what we can expect
This is why another GFC wont actually solve anything
Debt has been masking our energy problems

Australia's Productivity Commission reported - 70% of Australia’s total permanent migrant intake not actually considered ‘skilled’. Secondary applicants and family stream migrants make up most of this 'non-skilled' proportion.
Their Department of Jobs & Small Business' annual time-series tool tracking skills shortages across occupations showed that skills shortages across managerial and professional occupations were running well below the historical average and close to recessionary levels.
Further their top 5 occupations granted visa under skill stream were not on skill shortage lists.

Meanwhile, politicians and economists continue to investigate the low wage crisis in Australia.

11
up

But, but, but immigration is good for you. Expensive housing is good for you. Student debt, credit card debt, consumer debt and household debt is good for you. Selling assets to China is good for you. Price increases are good for you. Inflation is good for you. More expensive food is good for you. Tourism is good for you. Planting trees is good for you. Low interest rates are good for you. Public transport is good for you. Apartment living is good for you. More taxation is good for you. More regulation is good for you. Corporate spying is good for you. You don't know how lucky you are.

Such are the tenets of Modern Marxism it seems, since each involves taking power from the individual, mainly by turning us all into useful idiots who give away our power freely. The West seems to be on a suicidal path of dissolution and wealth dissipation for the time being. It is interesting to see the backlash building. It seems the Aussies voted for Coal Mining over Virtue Signalling in the last election.

Got an email from Kiwibuild today.. pushing FHB towards more debt.. But they have stock to move.. side effect of building buying houses in shitty locations.

Interest rates are falling - buying a KiwiBuild home is even more affordable.
Interest rates are at their lowest level in decades - the Reserve Bank yesterday revealed interest rates on a 5 year fixed mortgage are 0.9% lower (on average) than a year ago*. That means repayments would be $120 less per fortnight on a $500,000 mortgage, or $3,100 less over a year. That's just the average - it pays to shop around and find the bank that will offer you the best deal.

When you combine rents rising, interest rates falling, and more and more affordable KiwiBuild homes available to buy, homeownership - which might have been out of reach a year ago - suddenly seems much more affordable.

With KiwiBuild homes starting from $360,000 - you might already be in a position to buy. KiwiBuild homes are available for sale right now in Auckland, Canterbury, Tauranga, Whangarei, Wanaka, and Waikato, with more on the way soon.

You raise some interesting points but then descend into a lazy trope, which is a shame, "Modern Marxism", what even is that? And who operates under it?

"Virtue Signalling" again a lazy catch all, that attempts to dismiss legitimate concerns, the things that used to be called causes, principles, values, ethics - you know important things.

Planting trees, public transport, are good things.

Regulation is also a good thing, within reason, see causes of GFC as to why regulation is required, see expensive not fit for purpose housing closer to home as to why regulation is good.