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Here's our summary of key events overnight that affect New Zealand, with news China is taking the US to the WTO over its tariff actions - a move that is unlikely to see an early resumption of direct trade talks.
Firstly however, it is a holiday in the US so Wall Street is closed. European markets were generally quiet although London rose +1% (before some more parliamentary shenanigans). They followed Asian markets which closed yesterday generally lower by about -0.4%. But Shanghai had a banner day, up +1.3%.
In China, the unofficial Caixin factory PMI shows a small expansion in this sector. This wasn't expected, especially after the official measure of large-scale businesses (many state-owned) showed a contraction. The Caixin survey is of medium sized companies and suggests that these firms are adapting better to the tariff stresses.
And there is more evidence China is ignoring the pressure from US tariffs. Although it didn't retaliate directly to the latest American hike, if has taken the US to the WTO with a complaint that has a very good chance of success - and a move that is likely to rattle the Americans.
In Hong Kong, tens of thousands of Hong Kong university and school students swapped classes for democracy demonstrations yesterday, the latest act of defiance in the anti-government movement. Meanwhile in China itself, they are tightening the screws on their students with big-brother facial recognition systems to ensure class attendance and overall student behaviour.
In Japan, their factory PMI is in contraction, but only just. One issue getting the blame is that the Japanese are just too organised - most of the stimulus projects for the 2020 Olympic Games are complete or nearly so.
In the UK, political uncertainty is rising with the chances of a snap election high if Parliament blocks a hard Brexit.
Ratings agency Fitch is pointing out that annual GDP growth rates have been falling since mid-2018 in virtually all of the 20 large developed and emerging economies.
In Australia, their factory PMI is still expanding, even if it is at a slower rate.
Expanding at a faster pace however is house prices. The August CoreLogic report shows then up +1% in a month and the first rise in almost two years with Sydney and Melbourne leading the way. But despite this recent upturn, overall prices are almost -6% lower in a year.
The recent up-tick in Aussie job ads hasn't been sustained however, reverting to its decline in August and they are now down -11% in a year.
The UST 10yr yield is unchanged at 1.50% because Wall Street is closed. Their 2-10 curve still negative, but only by -1 bp. Their negative 1-5 curve is wide at -38 bps. Their 3m-10yr curve is out to a negative -59 bps. The Aussie Govt 10yr is at 0.92%, up +4 bps. The China Govt 10yr is up +1 bp at 3.08%, while the NZ Govt 10 yr is now at 1.07%, and down -3 bps from this time yesterday.
Gold is up at US$1,529, a rise of +US$9 since this time yesterday.
US oil prices are weaker again today at now just on US$54.50/bbl. The Brent benchmark is also lower at just on US$58.50.
The Kiwi dollar holding at its lower level of 63.1 USc. On the cross rates we are up to 94 AUc. Against the euro we are at 57.5 euro cents and marginally firmer. That puts the TWI-5 at just on 68.7.
Bitcoin is now at US$10,087 in a rising trend and up +5% from this time yesterday. 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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