Here's my summary of the key issues from overnight that affect New Zealand, including worries amid concerns that fighting in the Arabian Peninsula between a Saudi-led coalition and Houthi rebels in Yemen could disrupt supplies.
Apologies this article is a little curtailed today due to internet access problems.
Oil prices rallied for a second straight day on Thursday after Saudi Arabia and its Gulf Arab allies began air strikes in Yemen. There's now talk that Egypt may join in the conflict.
US crude has risen US1.70 to US50.91, while Brent crude has climbed US2.45 to US$58.93 a barrel.
In slightly brighter news the number of Americans filing new claims for jobless benefits fell more than expected last week while activity in the services sector hit a six-month high in March, underscoring the economy's solid fundamentals despite a recent softening in growth.
Initial claims for state unemployment benefits dropped 9,000 to a seasonally adjusted 282,000 for the week ended March 21, the Labor Department said.
That was the lowest level since mid-February and was better than economists' expectations for a dip to 290,000.
Harsh weather, the now-settled labor dispute at the country's busy West Coast ports, softer global demand and a strong dollar undercut growth early in the first quarter.
Thursday's upbeat reports, however, implied the slowdown would be temporary.
The four-week moving average of claims, considered a better measure of labor market trends as it irons out week-to-week volatility, fell 7,750 to 297,000 last week.
In a separate report, financial data firm Markit said its preliminary or "flash" Purchasing Managers Index for the service sector rose to 58.6 in March, the highest reading since September, from 57.1 in February.
Prices for U.S. government debt fell, while the dollar rose against a basket of currencies. U.S. stocks were trading lower after Saudi Arabia and its allies launched air strikes on Yemen.
In New York, the UST 10yr yields rose to 1.97%. The New Zealand swap curve moved lower and flatter yesterday in a trend that caught up with some of the recent Wall Street yields falls.
The gold price has risen to US$1,204/oz.
The New Zealand dollar is down overnight at 75.62 US¢, and it is at 96.8 AU¢, and the TWI is at 80.26
If you want to catch up with all the local changes yesterday, we have an update here.
The easiest place to stay up with event risk is by following our Economic Calendar here »
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4 Comments
What about this
https://wikileaks.org/tpp-investment/
The TPP Investment Chapter, published today, is dated 20 January 2015. The document is classified and supposed to be kept secret for four years after the entry into force of the TPP agreement or, if no agreement is reached, for four years from the close of the negotiations.
Julian Assange, WikiLeaks editor said: "The TPP has developed in secret an unaccountable supranational court for multinationals to sue states. This system is a challenge to parliamentary and judicial sovereignty. Similar tribunals have already been shown to chill the adoption of sane environmental protection, public health and public transport policies."
It makes perfect sense. Iran is the only country big enough and developed enough to become te hegemon in the Middle East. Nothing will stop this an the U.S. is well aware of this. Israel and Saudi Arabia are also aware of their pending road to minor status. The U.S. is shifting its Middle East alliances to Iran. So what you're seeing in te middle is east is israel and Saudi Arabia fighting to prevent this. Sad day for them as te US puts its own interests first. Contrary to what their media or pro israel groups like to tell you.
O&U that is exactly my thoughts.
I am sure i read somewhere recently that the reason for America backing away from Sudi and Israel is because Russia is a bigger target.
Aparently the plan is for Iran to be a big supplier of energy to Europe putting further pressure on Russia's economy. If that dosent break Russia's economy then it is a prolonged, and costly, war in Ukraine. By then (it is hoped by the US) Russia's economy will be well and truly stuffed, Putin will have been toppled and America ready to step in, show its kindness, and help those poor Russian citizens who are suffering.
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