Here's our summary of key economic events overnight that affect New Zealand, with news investors have turned positive in global equity markets.
The latest American regional factory survey is out and it is for Texas. It is a positive report, showing a fourth straight month of gains. However that string of gains is still -30% short of the sharp three months of losses recorded earlier in the year. But it is encouraging that new orders and employment are rising again.
But American employers are facing a new and expensive legal threat from employees and their families who contracted the coronavirus while at work. The legal claims mirror the hugely costly asbestos law suits.
In Europe, the Swiss have soundly rejected the repeat immigration referendum by a 62:38 margin. It was a ballot measure supported by a far-right party only. But the size of the rejection was a surprise, ensuring there is to be no Swiss Brexit.
And staying in Europe, HSBC looks set to sell its French banking business for €1, after it has recapitalised if with NZ$900 mln in additional funds. The disastrous deal comes as the bank races to shed underperforming units, and as Chinese companies buy increasing stakes in the beleaguered institution.
In China, coal prices have started rising again, and quite quickly. Tight supply and restocking demand from downstream industries is behind the turnaround. The rises involve both thermal and steel-making coal. And this comes just as Beijing claims it is aiming to be carbon-neutral in 40 years.
The Beijing auto show has opened to huge crowds. European carmakers report strong orders for upmarket vehicles. This car show is unique because it is the only one still operating in 2020.
Wall Street has started its week up strongly with the S&P500 up +1.7% in afternoon trade today. Overnight, European markets rose very strongly, up almost +3% on average. Yesterday, Shanghai closed flat, but Hong Kong rose a strong +1.0% and Tokyo ended with up +1.3% in a late burst. However that was not matched locally with the ASX200 down -0.2% while the NZX50 closed flat.
The latest global compilation of COVID-19 data is here. The global tally is 33,173,000 and up +254,000 in one day. The resurgence in the UK, France and Spain isn't abating. Global deaths reported now exceed 999,000 but clearly many are going unreported.
The largest number of reported cases globally are still in the US, which is up +32,000 overnight to 7,329,000 and a lower weekend report. The number of active cases are stable at 2,542,000 so as many new cases as recoveries and making no real progress. Their death total is now just over 209,000 and rising slower over their weekend.
In Australia, there have now been 27,044 COVID-19 cases reported, and that is only +4 more cases than yesterday. Australia, and even Victoria, is on top of their community outbreak now. Deaths are up however at 875 (+3). Their recovery rate is now almost 91%.
The UST 10yr yield is unchanged at 0.66%. Their 2-10 rate curve is unchanged at +53 bps, their 1-5 curve is also unchanged at +15 bps, while their 3m-10 year curve is still at +58 bps. The Australian Govt 10 year yield is up +1 bp at 0.84%. Similarly, the China Govt 10 year yield is down -1 bp at 3.15%. And the New Zealand Govt 10 year yield is also down -1 bps at 0.46%.
The price of gold is back up at US$1874/oz and a +US$14 gain today. And silver has made an outsized daily gain, up more than +2% overnight.
Oil prices are little-changed and are still just under US$40.50/bbl in the US, while the international price is marginally firmer at just under US$42.50/bbl.
The Kiwi dollar starts today at 65.5 USc and a very minor rise from this time yesterday. But against the Australian dollar we have lost some of the recent gains and now at 92.7 AUc. Against the euro we are little-changed at 56.2 euro cents. That means our TWI-5 is at 69.1.
The bitcoin price is firmer from this time yesterday, and now at US$10,893 and a +1.5% rise. 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 ».