US home sales rebound; CBA cracks down on foreign home buyers; Trump wants to replace Yellen; fears of Chinese stock market tumble; UST 10yr yield 1.80%; oil jumps, gold stable; NZ$1 = 70.0 US¢, TWI-5 = 72.6

Here's my summary of the key events overnight that affect New Zealand, with news Donald Trump is continuing to chase headlines, saying he'd probably replace Fed Chair Janet Yellen if he won the White House. This is despite him supporting the US central bank's efforts to keep interest rates low.

In other news, existing home sales in the US have rebounded more than expected in March. Sales jumped 5.1% from February, when they were unusually low, and 1.5% from the previous year. The National Association of Realtors figures show the median house price increased 5.7% from last year to US$222,700. Analysts expect the strong start to the spring selling season to continue, as mortgage rates remain low, there's confidence in the economy, the stock market is showing gains and the labour market is firming.

The Commonwealth Bank of Australia is tightening its mortgage lending requirements for foreigners, as the Reserve Bank of Australia warns Chinese property buyers pose an "indirect risk". The country's largest mortgage lender will no longer approve applications that cite self-employed foreign income. The lender will also stop accepting foreign-currency income of temporary Australian residents, who can now only borrow up to 70%, rather than 80%, of the value of a property. ANZ has made a similar move, as the number of Chinese people buying Australian homes has doubled for the second year in a row.

There are fears China's stock market might tumble like it did earlier in the year. China's stocks have sunk the most in almost two months, with the Shanghai Composite falling by as much as 4.5%. Traders are struggling to pinpoint the reason behind the sudden selloff, yet analysts say it's sparking concerns a January plunge is back.

In New York the benchmark UST 10yr yield has inched up today to 1.80%.

A possible change in monetary policy stance by the People's Bank of China has caught the bond market’s attention. The bank says it will be paying attention to macroeconomic risks, especially an over-expansion of corporate leverage. Wholesale rates in NZ have fallen on the news, as have wholesale rates in many countries. The US's move up, is a bit of an outlier.

The US oil price has surged to a four-month high. It's currently at US$43/barrel, while Brent is just under US$46/barrel. The 4% rise follows an EIA report showing US crude stocks rose less than expected last week.

The gold price is stable at US$1,252/oz.

The New Zealand dollar has weakened since yesterday, but remains high at just below 70.0 US¢. It's eased back to 89.5 AU¢ and 61.8 euro cents. The TWI-5 has dropped off yesterday's high, to 72.6.

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 ».