Here's our summary of key events overnight that affect New Zealand, with news China's official stimulus actions as their economy slows are proving inadequate.
But first up we should note that today is a public holiday in the US (Veterans Day) and parts of Europe (Armistice Day) so markets are either closed or on restricted trading. Data releases are few.
Wall Street equity markets are open but their bond markets are closed. So far the S&P500 is lower, down -0.2% on the day and off its highs. The trade deal uncertainty is weighing on this market. This follows flat markets in Europe overnight although London fell more than most, down -0.4% because the UK Q3 GDP result came in below expectations at just +1.0% pa.
Yesterday, Shanghai recorded a very bad day, down -1.8%, while Hong Kong was down worse, down -2.6% and the bad scene on the streets got even worse as police shot a protester. Tokyo was down a more restrained -0.3%.
Markets were more positive locally, with the ASX200 up +0.6% and the NZX50 up +0.4% and near its record high.
In China, bank credit growth slowed sharply in October, with new bank loans falling to the lowest level in two years in spite of a raft of measures in the past year to boost lending. Chinese banks extended 661.3 bln yuan in new yuan loans in October, and sharply down from the 1.69 tln yuan in September. These results show that authorities don't have a handle on the monetary implications of their slowdown.
China’s car-market continued to feel the chill in October as the traditional post-holiday demand peak failed to materialise, leaving automakers with few easy answers to attract buyers back to showrooms. Car sales declined -6% in October from a year earlier to 1.87 mln units, falling for the fourth consecutive month after a -6.6% fall in September.
In bad news for coal exporters, China says it will cap coal imports this year, meaning deliveries will slow sharply for the rest of the year. International thermal coal prices are expected to fall now. They are relying more on natural gas and they say that have ample supply for the coming winter.
In Australia, they are preparing for 'catastrophic' fire danger conditions today. The climate situation is dealing them a very bad hand and it has opened up bitter recriminations, in part fueled by the Murdoch news organisation.
The UST 10yr yield is unchanged at 1.95% due in part to the US holiday. Their 2-10 curve is positive at +27 bps. Their 1-5 curve is firmer for the week at +16 bps. Their 3m-10yr curve is a positive +39 bps. The Aussie Govt 10yr is still at 1.30%. The China Govt 10yr is now at 3.27% which is down -3 bps. The NZ Govt 10 yr is now at 1.39% which is also unchanged.
Gold is down another -US$4 to US$1,455/oz.
US oil prices are a little softer at just under US$57/bbl. The Brent benchmark is just over US$62/bbl.
The Kiwi dollar will start today at 63.6 USc and marginally firmer that this time yesterday. On the cross rates we are up at 92.9 AUc and a gain of +½c in a day. Against the euro we are firmer too at 57.7 euro cents. That puts the TWI-5 at just on 68.8.
Bitcoin is down sharply this morning at US$8,730 and a fall of -3.3% and ending the recent period of price gains. 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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