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Here's our summary of key events overnight that affect New Zealand, with news equity markets are under the pump this morning.
Overnight, German Chancellor Merkel gave a gloomy view on the chances of any Brexit deal with the UK. And an expanded US blacklist announced in the middle of the US-China trade talks undermines their commitment to finding a way through that impasse. The Chinese are about to retaliate.
And US data for PPI came in significantly weaker than expected. Normally US PPI data isn't important news, but this time it seems to be reinforcing the view that the US Fed will feel a push from it to cut their policy rate at their end-of-October meeting.
The S&P500 is down -0.9% so far today on top of yesterday's decline. That builds to a -2% loss so far in October. European markets fell a bit more than -1% overnight.
In New York, the UN seems about to default on paying its staff and creditors. It is owed US$1.5 bln from some large members including Argentina and the United States. The US owes about $1.3 bln and has been holding back in a plan to get its contributions cut from 25% to 22% of their funding. The US economy represents about 25% of world economic activity.
In China, the final Caixin services sector PMI survey results for September were weaker than the initial 'flash' result. In fact, they indicate that their services sector is now barely expanding, and isn't getting the improvement that their factory sector recently showed.
For the record, Shanghai closed yesterday after its first day back from a week-long holiday up +0.3%. Hong Kong was similar, Tokyo up +1%.
A closely watched Aussie measure of business confidence slipped lower in September. The NAB survey showed business conditions remained below-par, more evidence the RBA's rate cuts are not lifting corporate investment intentions.
The UST 10yr yield is unchanged at 1.55%. Their 2-10 curve is positive at +8 bps. Their negative 1-5 curve is wider at -27 bps. Their 3m-10yr curve is narrower at -18 bps. The Aussie Govt 10yr is up +1 bp at 0.89%. The China Govt 10yr is down -2 bps at 3.14%. The NZ Govt 10 yr is now at 1.03%, and a +1 bp blip this morning.
Gold is little-changed at US$1,499/oz.
US oil prices are slightly softer today at now just under US$52.50/bbl. The Brent benchmark is just over US$58.
The Kiwi dollar is marginally higher this morning, now at 63 USc. On the cross rates however we are firm at 93.6 AUc. Against the euro we are at 57.5 euro cents. That puts the TWI-5 at just on 68.6.
Bitcoin is now at US$8,182 and that is marginally lower than at 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 ».