Here's my summary of the key issues from overnight that affect New Zealand, remembering that both New York and London are on a long weekend holiday.
China announced overnight that they are to cut import duties for some high-profile consumer products starting in June by about a half as an "important measure to create stable growth and push forward structural reform". Their stated goal is to reduce import tariffs on some consumers goods to stoke domestic spending and support the slowing economy at a time when record numbers of cash-rich Chinese tourists are splurging overseas. They also want to restrain local fake goods supply to improve their IP protection reputation.
In Japan, trade data out overnight showed that, although they moved back into a trade deficit in April after logging its first surplus in almost three years in March, the shortfall shrank significantly year on year, thanks to stronger exports especially to the US and lower energy bills.
And staying in Japan, they have signaled they will be importing more butter this year because of past troubles with supply.
In Australia, they are getting some hard lessons in realpolitik. China is using its trade muscle to try and shift Australia's close relationship with the US by befriending Brazil. It's a game being played with high stakes; a US$50 bln round has just been played.
The nature of world trade is changing and that is affecting the volume of trade. The value may be increasing as goods get lighter, smaller and cheaper, but the amount that goes by sea is shrinking. And the traffic levels in the Panama Canal show the transition clearly. Air freight is now a much more cost effective option.
In New York, bond markets are closed so the UST 10yr benchmark yield is still at 2.21%.
The US oil markets are also closed and the US benchmark price is still just under US$60/barrel again, while Brent crude is at US$65/barrel.
The gold price is marginally lower at US$1,204/oz.
The New Zealand dollar starts today pretty much unchanged at 73.1 US¢, at 93.4 AU¢, and at 66.6 euro cents. The TWI-5 is at 77.2.
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 today is by following our Economic Calendar here »
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