Dairy prices stabilise; US building approvals surge; EU and Greece lash out at each other; warning on jobs; UST 10yr yield 2.32%; NZ$1 = 69.9 US¢, TWI-5 = 73.6

Here's my summary of the key issues from overnight that affect New Zealand, with news of a major warning about our employment base.

But first, dairy prices fell overnight in the latest auction to a new 6 year low. This result does not ease growing doubts over immediate demand prospects, although there are signs in the the important milk powder market prices may be stabilising. The GlobalDairyTrade index fell -1.3% from two weeks ago to its lowest level since July 2009 and is the seventh fall in a row which adds up to a total fall of more than -30%.

But there are some hopeful signs. Butter prices rose +3.3% and cheese prices +2.4%. The news is better in New Zealand dollar terms following the recent fallback of our currency. While the overall index fell -1.3% in US dollar terms, it rose +1.5% in New Zealand dollar terms. Only 24,000 tonnes was offered and sold in this auction and that is -24% less than the same auction a year ago. Prices in NZ dollar terms are now -25% lower too.

In the US, housing starts recorded an unexpected fall in May from April but they were still +5% above the May 2014 levels. However, the level of new building permits surged in May to near an eight year high.

In Europe, the Greek Prime Minister has lashed out at their creditors overnight, accusing them of trying to "humiliate" Greeks, as he defied a growing series of warnings that Europe is preparing for them to leave the euro. Equally acerbic, the EU President accused him of misleading the Greek people over what the creditors are proposing. Another Greek political party has offered the Prime Minister their support if they can reach a deal to stay in the euro and eurozone.

And in Australia, a new report out overnight says that up to 40% of today's jobs will disappear over the next 10 to 15 years, replaced by computer programs. The issue is the same for New Zealand. Manufacturing has already seen the trend of machines replacing jobs even while output grows, but the giant services economy is next. How sure are you that the job you do is not under threat? It is a big challenge for public policy, unavoidable in an interconnected world.

Back in the present and back in New York, UST 10yr benchmark yields fell again today by another -4 bps to 2.32%.

US oil markets pipped up, with the US benchmark price at US$60/barrel, and Brent crude is now at US$64/barrel.

The gold price is down however, now at US$1,179/oz.

The Kiwi dollar is still range bound. This morning it opens again at 69.9 US¢, at 90.2 AU¢, and it is at 62.2 euro cents. The TWI-5 is at 73.6.

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 »