Here's our summary of key economic events overnight that affect New Zealand, with news of some surprising data out overnight.
But first in the US, producer price inflation has ticked up to +1.2% pa in September, twice the pace of their August rate. But that is less than CPI inflation which came in at +1.4% in the same month.
Moving over to China, their bank credit expanded at a faster pace in September, boosted by the government's continued efforts to add stimulus and stronger demand amid their further economic recovery. Chinese banks extended ¥1.9 tln of new loans in September, higher than estimates of ¥1.7 tln and significantly more than ¥1.3 tln in August.
Singapore's economy bounced back in the September quarter by very much less than expected in what can only be regarded as a disappointing result. After falling more than -13% in Q2, it gained back less than +8% of that in Q3 when analysts were expecting the result to show a much healthier recovery.
The latest update to Australian consumer sentiment has produced "an extraordinary result", surging on the back of a very positive response to the October Federal Budget, ongoing success across the nation in containing the pandemic, and the expectation that the RBA is likely to further cut interest rates at its next meeting on November 3. No-one saw this sharp improvement coming. Of course, it might be an outlier result.
The global pandemic restrictions has brought an unprecedented fall in greenhouse gas emissions in the first half of 2020, larger than during the 2008 financial crisis and even World War II. Using data including hourly electricity production, vehicle traffic from more than 400 cities worldwide, daily passenger flights and monthly production and consumption figures, this study determined that the year-on-year emissions dropped almost -9%, a shift that was the largest in modern history.
Wall Street is -0.5% lower today as recorded by the S&P500. Overnight, European markets were flat or just under. Yesterday, Shanghai traded down -0.6%, Hong Kong ended flat, and Tokyo was up +0.1%. The ASX200 ended its session down -0.3% from the prior day, but the NZX50 Capital Index was up a creditable +0.7% and adding to Tuesday's good rise.
The latest global compilation of COVID-19 data is here. The global tally is 38,304,000 and up at a faster pace of +349,000 in one day. The case growth is a real problem in Russia, the UK, Iran, France and now Italy again. Global deaths reported now exceed 1,088,000 (+5,000) but clearly many are going unreported.
The largest number of reported cases globally are still in the US, which is up +56,000 in one day to 8,109,000. The number of active cases is at 2,648,000 so as many new cases as recoveries and not making real progress yet. Their death total is over 221,000 and still rising at +1000 per day.
In Australia, there have now been 27,341 COVID-19 cases reported, and that is +24 more cases than we reported yesterday. There were twice as many new cases in NSW as Victoria yesterday. Deaths are rose to 904 (+5).
The UST 10yr yield is lower by -1 bp this morning, now at just under 0.72%. Their 2-10 rate curve is a little flatter at +58 bps, their 1-5 curve is also flatter at +17 bps, while their 3m-10 year curve is flatter too at +63 bps. The Australian Govt 10 year yield will start today down -1 bp at just on 0.83%. The China Govt 10 year yield is also marginally firmer at 3.23%. The New Zealand Govt 10 year yield is unchanged at 0.58%.
The price of gold is back up to US$1903/oz and a gain of +US$12/oz.
Oil prices are little-changed, now just over US$40.50/bbl in the US, while the international price is up a bit more to just on US$43/bbl.
The Kiwi dollar starts today little-changed at 66.6 USc. Against the Australian dollar we are firmer at 92.9 AUc and another gain of almost +½c. Against the euro we are unchanged at 56.6 euro cents. And that means our TWI-5 is also unchanged at 69.8.
The bitcoin price is marginally softer today, now at US$11,353. 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 ».