Here's my summary of the key events overnight that affect New Zealand, with news of more market carnage.
This morning oil prices have slumped further, now below US$27/barrel for the first time since 2003. Markets are now thinking the crude supply glut could last longer.
Some average data released overnight failed to inspire markets, and Wall Street was down more than -3% earlier this morning although in the past few minutes it has clawed some of that back.
Bond prices have surged, especially US Treasuries. The yield on the 10yr is now just 1.97%.
We are in full risk-aversion mode, although the Kiwi dollar is higher this morning from where we left it last night.
In the US, housing starts and building permits fell in December after some hefty gains the prior month. Year-on-year however this data shows some impressive gains, well over +10%. But no-one is looking at that today.
American CPI inflation came in at +0.7% for the year to December, +2.1% excluding food and energy. But the monthly rate showed no increase.
That means that worker's real wages rose +1.6% in the year to December, a measure that accounts for inflation plus changes in the work hours available in the work-week.
In China, banks are delaying and even blocking some foreign exchange transactions, a move that could hurt demand for foreign assets including those for real estate purchases. The move comes as authorities are increasingly concerned about capital flight. The ability of authorities to control this is doubted by many.
Sort of related, IATA is reporting growing softness in air travel out of Asia.
Back in New York, the benchmark UST 10yr yield is sharply lower at 1.97%. Locally, swap rates dived across the board here yesterday. Wholesale money funding just got -10 bps cheaper, a very big one-day move.
The US oil price is now at just US$26.50/barrel while the Brent benchmark is at US$27.40. US inventory data is due soon and fears about what it will reveal are likely behind today's fall.
The gold price up, and is now at US$1,104/oz. But that is a very modest rise given the market turmoil.
The Kiwi dollar fell sharply yesterday on the local CPI data, but it has tried to get some of that back this morning. Still, we are 100 bps lower today than this time yesterday. We start today at 63.9 US¢, at 93.2 AU¢, and at 58.6 euro cents. The TWI-5 is now at 69.6.
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 ».