Here's my summary of the key events overnight that affect New Zealand.
The IMF warns emerging markets should brace for a rise in corporate failures as indebted firms struggle with declining growth and higher borrowing costs.
Cheap borrowing saw firms in developing countries quadruple their debt to over US$18 trillion in the last decade. The IMF warns emerging markets could now end up in a tight spot, as their economies are weakening, and the Fed is set to raise interest rates and make borrowing more costly.
It says authorities need to be wary of threats this situation poses to systematically important companies, banks and other financial firms.
India’s central bank has cut interest rates to a 4.5 year low, in an attempt to fuel economic growth and inflation. It’s cut the rate by 50 basis points, which is more than expected, to 6.75%.
Investors, increasingly put off by Sydney's sky-rocketing property prices, are turning to Brisbane and Melbourne apartments to stock their portfolios. The Sydney Morning Herald reports rental yields are higher for apartments in Brisbane and Melbourne, as property prices haven’t risen as aggressively as in Sydney.
However it reports that while remaining at a healthy 70%, auction clearance rates have started to taper off in Sydney and Melbourne. Some pundits say this might be a sign the market’s starting to temper.
Chinese authorities have limited the amount of money certain Chinese bank cardholders can withdraw when travelling overseas each year, as they crack down on money laundering.
China’s State Administration of Foreign Exchange has capped the amount UnionPay cardholders can withdraw, at 100,000 yuan, or NZ$25,000. UnionPay is a Chinese equivalent of Visa or Mastercard and is accepted by some banks here.
Consumer confidence in the US has risen more than expected over the last month. The Conference Board – an industry group the Fed keeps an eye on – says consumer attitudes rose to their highest level since January. Expectations for there to be inflation over the next year also rose.
In New York, the UST 10yr yield benchmark has dropped sharply again to a very low to 2.05%.
The US benchmark oil price is unchanged at US$45/barrel, Brent is at US$48/barrel.
The gold price is lower at US$1,127/oz.
The New Zealand dollar remains fairly unchanged from this time yesterday, at 63.4 US¢, 90.8 AU¢, and 56.4 euro cents. The TWI-5 is at 68.2.
If you want to catch up with all the local changes overnight, 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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