Here's my summary of the key news overnight in 90 seconds at 9 am, including news of markets hitting record highs after the US jobs report.
This morning's release of the US non-farm payrolls report saw the ADP data confirmed. The jobs gain was +288,000 in June, and the unemployment rate eased lower to 6.1% from 6.3%. Their participation rate was unchanged however at a lowly 62.8%.
The most interesting part was that their long-term unemployed last month accounted for the smallest proportion of US jobless ranks in five years. And more than half the new jobs in 2014 came with above average pay.
The American trade deficit also added to the positive tone, shrinking a bit more than expected in May as exports jumped to a record high.
Across the Atlantic, the ECB left its policy rate unchanged this month, after cutting them to a record low last month and instituting a negative interest rate on deposits with the central bank. Mario Draghi says he thinks they now have the deflation threat contained but he also says the risks are all negative at the moment.
In Australia, the RBA spent yesterday trying to talk down its currency with some small effect. It was helped by weaker than expected retail sales data for May although building approvals were better than was anticipated. The RBA talk is unlikely to be effective for very long because markets indicate they don't see it backed up with action.
Declining American unemployment and a pledge that European interest rates will stay low jolted the Dow Jones Industrial Average above 17,000 for the first time ever, lifted the dollar and sent bonds lower.
UST 10yr bond yields jumped in New York today on the good jobs figures and are now at 2.65%. The oil price is down again and slipping below US$104/barrel. Gold fell too and is now at US$1,320/oz.
American markets have closed early today for their July 4 holiday weekend.
And finally today, an echo in China from a small item we covered here yesterday. The BNZ Online Retail report noted relatively heavier use by rural New Zealand of online shopping than their urban counterparts. Well, overnight China's media reported the same thing. Rural China is embracing online shopping faster than people in urban areas.
We start today with the NZ dollar higher again at 87.5 USc, and up to 93.6 AUc on a weak Aussie. The TWI is now at 81.5 and just 16 bps from being at a record high.
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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