Here's my summary of the key news overnight in 90 seconds at 9 am, including news of a fall in economic growth in the US.
Their first quarter economic growth came in much lower than was expected in today's second estimate, and also much lower than the advance estimate. It is now reported to have declined at a 1% pa rate in the March quarter, mainly on the back of bigger decreases in inventories than earlier reported. That's the first shrinkage since 2011. However, markets regard this all as old news. Stocks are higher and at record levels.
Initial unemployment claims for last week were better than expected however. In fact their 'moving average' trend is now at its lowest level since August 2007. 2.6 million Americans are on these jobless benefits.
And their pending home sales index rose in April but not by as much as was expected. Gains in the Midwest and Northeast offset declines in the West and South. In fact, this real estate activity is 9.2% lower than for the same period a year ago. These markets are a drag on the US economy.
A worldwide bond-market surge - that is, falling yields, rising bond face values - pushed yields to the lowest levels in a year on growing evidence central banks can keep stimulating economic growth without igniting inflation. And not only are rates low, credit spreads are declining as well.
In Japan, the first data on retail spending after their GST rise shows sales dropped at the fastest pace in at least 14 years. It had better bounce back fairly quickly or Japan's reform process may falter.
In China, analysts are increasingly sceptical that a major program of stimulus is not going on as is claimed by the Chinese government. It is and it is at a significant level now, says Nomura.
Back in the US, it is being reported that the US Justice Dept is seeking a massive $10 bln penalty from BNP Paribas for sanctions violations. In addition, it has been revealed that a very large fraud probe is underway targeting some big banks.
In Australia, and in an echo of an issue here, their Reserve Bank says foreign investors may be helping to push up the prices of some Australian homes, but are probably not crowding out first home buyers. The Bank's views were in a submission to a parliamentary inquiry into foreign investment in residential real estate.
Bond yields are still falling. The UST 10 yr benchmark is now down to 2.42%. Oil is up, especially in the US as pressure goes on to allow exports, and gold is down, now below $1,255/oz.
Stocks are higher again, with the S&P500 at a new record today.
On the exchange rate, we start today lower. The NZ dollar is currently at 84.7 USc and an eleven week low, at 91.2 AUc and the TWI is now at 79.0.
If you want to catch up with all the changes yesterday, we have an update here.
The easiest place to stay up with today's event risk is by following our Economic Calendar here »
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