Here's my summary of the key news overnight in 90 seconds at 9 am, including news factories are busier worldwide.
An improving economic picture outweighed concerns about yesterday’s Federal Reserve minutes, though the uncertainty around monetary policy is set to linger until September. Markets are now expecting the US$85 bln bond buying program to be cut to US$70 bln in September.
China’s economic fate is one of the key themes driving sentiment this year, so the HSBC Flash China PMI yesterday was keenly awaited. The results were a boon to both the debt and equity markets: the index increased to 50.1 from 47.7 the previous month, placing it back in positive territory. Similar measures in Europe, (especially Germany but not France) and the US show similar growth.
Reinforcing the trend, note that the Baltic Dry index is now back over 1,000 and has been since July. Demand for ships is recovering.
On the flip side, and in data just released, US initial unemployment claims were 4% higher last week than the week before, and above expectations, but markets have yet to absorb this news.
Remember Cyprus? Well here's an unintended consequence of the EU bailout - Russian account holders have become majority owners of the country’s largest financial institution. Did the EU rescue Cyprus by giving it to the Russians?
In our backyard, Australia's Woolworths has snapped up the Kiwi clothing and homeware retailer EziBuy in a $NZ350 million deal. Remember, the Aussies may now have EziBuy, but Kiwis now have $350 million.
Oil is staging a bit of a recovery, back up to US$105/barrel, gold is holding at the level it has been at for the past week at US$1,375/oz - despite reports of rising demand in China and India - and the Dow is rising slowly back toward the 15,000 level - unaffected by the mornings shutdown of the NASDAQ which had major computer problems.
The NZ dollar is lower again today at 78.4 USc, 87.0 AUc, and the TWI is just under 74.0, extending the fall to more than 3% so far this week.
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6 Comments
8300 v 1100 today...I keep telling David C this....
If you take the 3 year bloomberg you can see july ish time there is a wee hump and that drops off come autumn, summer driving season?, otherwise its in noise band....trend is flat, maybe just maybe a tiny up....come back in October, if its still 1100 and more yes....then I'll take note.
regards
Too easy! Here's the cunning plan: We sell everything, businesses, farms, power stations, breweries, hotels, banks (cripes these overseas buyers are dumb - imagine swapping good money for that stuff) - then we can work for the foreign owners. We'll be rich, RICH I tell you.
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