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Here's our summary of key events overnight that affect New Zealand, with news key data in both the US and China has weakened.
American producer prices unexpectedly rose in August, up +3.0% from a year ago. But that doesn't seem to have shifted market expectations that the Fed will cut its benchmark interest rates again next week to support a slowing economy.
US wholesale trade has stalled in July, unchanged (up 0%) from the level it posted in July 2018. Just as concerning is that inventories are now more than +7% higher than a year ago. Production is not being sold, it appears.
In California, they have passed a landmark law that makes gig economy 'contractors', employees of the platforms they work for, with all normal employee rights.
In China, bank debt growth rose sharply in August, up more than +14% from July. While that was more than expected, it is up only +11% from a year ago and analysts suspect it may not be enough to support their slowing economy.
We should also note that eastern China is in the middle of a drought. Rivers and waterways are drying up in a serious way, and that is hampering trade and economic activity. It is another key reason, along with international trade, and swine flu, that China's economy is slowing.
The Hong Kong protest movement has taken a sharp new turn - from street action, to singing. And it might annoy Beijing more.
OPEC has cut its forecast for growth in world oil demand in 2020 due to the economic slowdown. Oil prices fell on the release of their report.
In Australia, the Westpac-MI consumer sentiment survey has lapsed back into slight negative territory again with continued pressure on family finances and concerns about the near term outlook weighing on sentiment. It is not the only sentiment survey that is pointing downward.
And an ATO Commissioner is personally warning the big four audit firms about their tax advice, saying they are so big and so influential, they are a systemic risk to their tax system. Tax advice from these four firms may now be counterproductive because it will attract direct scrutiny and pushback, making these clients an ATO target.
The UST 10yr yield continues to rise, up another +4 bps and now at 1.74%. Their 2-10 curve marginally more positive, now, at +6 bps. Their negative 1-5 curve is narrower at -20 bps. Their 3m-10yr curve is also narrower at -29 bps. The Aussie Govt 10yr is up +1 bp at 1.14%. The China Govt 10yr is also up +1 bp at 3.06%, while the NZ Govt 10 yr is up +6 bps, now at 1.28%.
Gold is marginally higher today, up +US$3 at US$1,495/oz.
US oil prices are sharply lower today, down -US$2 and now just over US$55.50/bbl. The Brent benchmark is also down at just on US$60.50.
The Kiwi dollar is little-changed at 64.2 USc. On the cross rates we are softish at 93.5 AUc. Against the euro we are little-changed at 58.3 euro cents. The TWI-5 still at 69.5.
Bitcoin is now at US$10,082 and -1.5% lower than 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 ».