Here's my summary of the key news overnight in 90 seconds at 9 am, including news from Asia that is generally positive.
Japan not only won the 2020 Olympics, it is also winning its struggle with low growth and deflation.
Japan’s economy grew faster than previously estimated in the second quarter, with a significant revision upwards. Their economy expanded 0.9% during the period, compared to the previous three months. That translates into an annualised growth of 3.8%.
Across in China, there is a resurgence there too. China’s trade surplus reached US$28.5 billion last month, the highest level since last December, as exports accelerated. Because China is the world’s largest exporter and often the first large country to release trade data each month, its trade figures are a widely watched barometer not only for the health of China’s large export sector but also of the global economy.
In less than four weeks, shipping's Baltic Dry index has risen 35%; in a year it has more than doubled from a very low ebb.
Late yesterday, China also reported its consumer inflation was 2.6% on August, a slight decline. The food price component however rose 4.7%. Markets are happy inflation is contained in China.
After being set in a very tight trading range recently, the Chinese currency was allowed to trade noticeably stronger yesterday. Something to keep an eye on.
The Dow is up strongly in late trade, approaching the 15,100 level. In addition to the Asian news, some M&A activity helped bolster sentiment. Gold is moving sideways, and oil is down.
The US Treasury 10 year's flirtation with a 3% yield, which gets a few people excited, is still hesitant. Prices rose, yields fell today and are currently at 2.90% from 2.94% yesterday. This yield decline saw the US currency fall in response.
The NZDMO sells Treasury bills here today, and the LGFA has a new debt auction tomorrow and we will be reporting the results of both.
The NZ dollar is starting today up a little at 80.2 USc, 86.9AUc, and the TWI is at 75.6.
The easiest place to stay up with today's event risk is by following our Economic Calendar here »