Here's my summary of the key events over the weekend that affect New Zealand, with news only from countries that didn't have a long weekend holiday.
The latest data out of the giant American housing market shows prices and volumes are climbing, with volumes up more than +3% and prices up more than +4%.
The US economy grew at an annualised rate of +1.4% in the fourth quarter of 2015, according to official figures. This was an upward revision from an initial estimate of +0.7%. Overall, the US economy grew at a rate of +2.4% for all of 2015 according to these final figures. It is consumer spending (from real wage gains) that is giving the American economy its boost, rather than rising profits.
In contrast, China's firms are showing rising profits. Large Chinese industrial companies posted the surprising rise in the first two months of the year, according to official data. They rose +4.8% from a year earlier, compared with the -4.7% drop in December last year and the -2.3% decline in 2015.
Retail sales in China are still expanding at a rapid pace: up +10.2% year-on-year, although that is a slower rate of growth that for any month since May 2015. These 'improvements' are the 'payoff' for relaxations in housing finance, and stimulus by authorities. That stimulus injection is still rising.
And changing housing regulations in China is seeing buyers rush to complete transactions there, driving volumes to record levels. But a big and unsettling drop is expected in the April shadow.
In New York the benchmark UST 10yr yield has slipped in the opening session today and is now at 1.88%.
The oil price has also slipped and is now at US$39/barrel in the US, while Brent is just on US$40/barrel.
The gold price starts a little lower too, now at US$1,220/oz.
The NZ dollar will start this shortened week a little higher at 67.2 US¢, at 89.1 AU¢, and at 60 euro cents. The TWI-5 index is just on 70.9.
If you want to catch up with all the local changes on Thursday, 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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4 Comments
More problems for Shanghai Pengxin. Hunan Dakang which is currently suspended from the SSE awaiting an announcement, (two weeks ), was warned last week by the stock exchange that the groups attempt to pledge shares using inter related parties and by not announcing the information to the SSE was again a breach of securities law. More troubling is the need to pledge shares, when you cannot raise funds thru normal channels. Where is the OIO , a full review of this private company Shanghai pengxin should be undertaken. Hunans new Chairman Xie Tao will undoubtedly right the sinking ship.
It is consumer spending (from real wage gains) that is giving the American economy its boost, rather than rising profits. Are you sure?
The US economy grew at an annualised rate of +1.4% in the fourth quarter of 2015, according to official figures.
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