Here's our summary of key events overnight that affect New Zealand, with news global food markets are in focus today.
But first up, financial markets are awaiting signals from the US Fed's release of the minutes from its last meeting, and that will happen after 8 am this morning (NZT).
In Canada, consumer inflation remains stable at 1.9% in October.
China’s central bank announced lower interest rates for new benchmarks used by lenders to price their loans, marking the third time this month that borrowing costs have come down as Beijing shores up flagging economic growth. Their one year prime rate is now 4.15% and their five year prime rate is now 4.80%, both -5 bps cuts.
Japan's trade balance shifted into surplus in October, but in a much weaker way than expected. Exports fell -9.2% and imports fell -14.8% from the same month a year ago.
In the Philippines, the state electricity boss has admitted that due to the previous sale of the national grid to a Chinese company, they could be plunged into darkness remotely by a Chinese engineer as the core controls have moved out of the country.
And a report, jointly prepared by PwC, Rabobank and Temasek, it has been pointed out that without a massive $800 bln investment over ten year in agriculture, Asia will struggle for food security and self sufficiency.
India is suffering a severe shortage of onions and has just approved a massive import program to help stabilise prices and supply. It may disrupt world onion prices in a similar way that China's pork crisis has done.
And the US has reported its lowest trade surplus in agricultural products in more than 13 years, with imports almost matching exports (which are stalled or declining). It is a sharp turnaround in their ag trade.
In Europe, the ECB's latest Financial Stability Report warns of excessive financial risk-taking, including by non-banks, highly leveraged corporates and real estate sectors, as a consequence of their very low interest rate policies.
Wall Street is lower today after a few days of treading water. Despite some positive signals from some retailers, the S&P500 is down -0.3% in mid-day trading today. That follows European markets that were down a similar amount overnight. And yesterday, Tokyo, Hong Kong and Shanghai all fell more, down about -0.7% on the day. The ASX200 was particularly hard hit yesterday, down -1.4% and led by sharp retreats by banks, especially Westpac. In complete contrast, the NZX50 rose +0.8% yesterday.
The UST 10yr yield is down another -4 bps today and now at 1.74% and softening. Their 2-10 curve is positive but tightening at +17 bps. Their 1-5 curve is also tighter at +7 bps. Their 3m-10yr curve is also less positive +19 bps. The Aussie Govt 10yr is down -5 bps at 1.08%. The China Govt 10yr is now at 3.20% and a -2 bps overnight dip. The NZ Govt 10 yr is now at 1.36%, down -3 bps.
Gold is down -US$5 at US$1,468/oz.
US oil prices are sharply higher today and reversing yesterday's fall, now just over US$57/bbl. The Brent benchmark is just over US$62.50/bbl.
The Kiwi dollar is a little softer this morning at 64.1 USc. On the cross rates we are firmer at just over 94.3 AUc and that is the highest in nearly three months. Against the euro we are under 58 euro cents. That leaves the TWI-5 at just on 69.4.
Bitcoin is little-changed this morning at US$8,114. These are starting to accumulate; since the beginning of the month the bitcoin price has fallen -11%. 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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