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Here's our summary of key events overnight that affect New Zealand, with news data out of the world's largest economies continues to unimpress.
The latest PMI survey for the US in September shows both their factory sector with a limp expansion, and now their service sector is showing the same. This survey suggests that the US economic engine is worryingly close to a stall.
However, the August Chicago Fed National Activity Index suggests the direction forward might be better.
In Canada, there was unexpectedly positive wholesale trade data out overnight with consumer items, especially cars, helping lift this data.
In China, they are going into a lockdown period ahead of the 70th anniversary of the Chinese Communist Party. Real news will be scarce overwhelmed by rivers of propaganda. But Chinese buyers did purchase ten shiploads of American soybeans last week, it has been revealed. And it turns out the trade trip to a US ag state wasn't cancelled by them, it was cancelled by the US Administration.
And Beijing has instructed local governments to submit their plans for issuing special-purpose bonds as soon as possible. The directive signals that central government policymakers are in a hurry to square away funding for growth-boosting infrastructure projects amid fresh signs that growth is slowing.
In Europe, their September PMIs are suffering a broad-based fall in both the manufacturing sector, which is contracting faster, and services, which is now barely expanding. That had Mario Draghi lamenting that the eurozone economy faces a 'prolonged sag'.
In the core metals markets, there are PMIs too. All the three biggest metals are in contraction mode although to be fair, this is not getting worse. (Steel, Copper, Aluminium.) This is despite signs China's steel industry is generating another glut.
In Australia, their composite PMI is expanding in September, cancelling out the unexpected August contraction. Essentially, it was their service sector which turned up while their factory sector contracted. There are early signs that the combination of rate cuts, tax rebates and rising dwelling prices is having a positive impact on the services sector.
And still in Australia, the big banks there are lowering their mortgage serviceability test rate. It seems to have been cut to 5.35% from 5.75%, the rate that borrowers are assessed their ability to withstand rising rate pressure.
The UST 10yr yield is lower today, at 1.71% and down -1 bp from this time yesterday. Their 2-10 curve is still positive at +4 bps. Their negative 1-5 curve is unchanged at -24 bps. Their negative 3m-10yr curve is slightly wider at -26 bps. The Aussie Govt 10yr is down -2 bps to 1.00%. The China Govt 10yr is at 3.11% and down -1 bp. The NZ Govt 10 yr is now at 1.16%, a -2 bps drop overnight.
Gold is up +US$6 to US$1523/oz.
US oil prices are a little firmer today at now just on US$58.50/bbl. The Brent benchmark is just over US$64.50.
The Kiwi dollar has firmed slightly this morning, off its lows at 62.9 USc. On the cross rates we are firmer too at 93 AUc. Against the euro we are at 57.3 euro cents. That puts the TWI-5 back up to just on 68.4.
Bitcoin is now at US$9,801 and that is -1.8% lower 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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