US jobless claims rise slower but benefit qualifications expire faster; US services expansion based on healthcare; China services expand faster; Australia 'wins' in China trade; UST 10y at 0.92%; oil and gold up ; NZ$1 = 70.8 USc; TWI-5 = 72.8

Here's our summary of key economic events overnight that affect New Zealand, with news stresses from China's newly booming economy are showing up more now.

But first, in their holiday week, new jobless claims in the US came in lower than the prior week at +714,000 and this lowered the total the number on these benefits to 5.5 mln, a reduction of more than half a million in one week as the pace of benefit expiration rises. For increasing numbers of people they are going into winter and the 'holiday season' with little to cheer about.

Just like the factory sector we reported yesterday, the American services sector is giving mixed signals. The widely-watched local services PMI reported a slower expansion while the internationally benchmarked Markit one reported a slightly faster expansion. But both agree that their services sector is expanding and at a modest to good rate. Sadly, a 'booming' healthcare sector is a key reason these levels are higher.

In China, their private survey of services reported a very good improvement. They had a substantial rise in business activity amid their quickest increase in new orders since April 2010. Employment growth was its strongest since October 2010. But inflationary input costs rose at their sharpest pace for over a decade.

One consequence of the booming Chinese economy is the return of very bad air pollution.

There is a report that China is allowing one cargo of Australian coal that was been waiting since May to unload. It is unsure whether this is signals a change in policy, or just one buyer managing to manipulate their system.

And the spot price for iron ore jumped to US$136.29 in a boost for Australia and at the expense of Chinese buyers.

And even in advance of that overnight jump, Australia reported another great trade surplus on goods and services yesterday, up to +AU$5.2 bln for October and taking the twelve month total to a massive AU$74 bln and +17% higher than the banner 2019 result.

Meanwhile, the services sector in Australia expanded faster in November but it is still only at a modest rate.

Wall Street is up a minor +0.1% in early afternoon Thursday trade for the S&P500. Overnight European markets were generally lower by about -0.3%. Yesterday, Tokyo closed flat, Hong Kong rose +0.7% while Shanghai closed down -0.2%. The ASX200 was up +0.4% while the NZX50 Capital index closed -0.6% on the day.

The latest global compilation of COVID-19 data is here. The global tally is 64,724,000 and a +626,000 rise overnight. It is very grim in Russia, the UK, Brazil and Italy with great stress on their hospital systems. It does seem to be easing further in Belgium, France and Spain. Global deaths reported now exceed 1,497,000 and up +12,000 in one day.

The largest number of reported cases globally are still in the US, which rose +214,000 overnight to 14,355,000 and a faster pace of increase. The US remains the global epicenter of the virus. The number of active cases is surging however at 5,602,000 and that level is up +93,000 in one day, so many more new cases more than recoveries. Hospitalisations are becoming a very major concern. Their death total now exceeds 281,000 and its pace is rising quickly again. The US now has a COVID death rate of 845/mln and the seventh highest in the world.

In Australia, they are not getting any resurgence. There have now been 27,939 COVID-19 cases reported, and that is just +16 more cases yesterday. Now 52 of their cases are 'active' (unchanged). Reported deaths are unchanged at 908.

The UST 10yr yield will start today lower at 0.92% and a -3 bps retreat. Their 2-10 rate curve is flatter at +76 bps, their 1-5 curve is also flatter at +29 bps, with their 3m-10 year curve is again much flatter at +84 bps. The Australian Govt 10 year yield is holding at 1.01%. The China Govt 10 year yield is also unchanged at 3.33%, and the New Zealand Govt 10 year yield is softish, down -1 bp at 0.90%.

The price of gold is up another +US$4 to US$1833/oz.

Oil prices are unchanged today, and still just under US$45.50/bbl in the US, while the international price is still just under US$48.50/bbl. OPEC says it will add supply in the new year.

And the Kiwi dollar has firmed overnight to 70.8 USc and a new high since April 2018. Against the Australian dollar we have fallen back slightly to 95.2 AUc. Against the euro we are holding at 58.3 euro cents. That means our TWI-5 is unchanged at 72.8.

The bitcoin price has risen overnight, now at US$19,387 and a +2.4% rise from 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 ».