Economic growth in US brakes; US home ownership near rock bottom; BoJ interest rate hold surprises; China cracks down on foreign NGOs; UST 10yr yield 1.86%; oil and gold up again; NZ$1 = 69.7 US¢, TWI-5 = 72.5

Here's my summary of the key events overnight that affect New Zealand, with news economic growth in the US has braked sharply in the first quarter to its slowest pace in two years. GDP increased at an annual rate of 0.5% according to the US Commerce Department's advance estimate, down from 1.4% in the fourth quarter of last year. 

Consumer spending softened and a strong dollar continued to undercut exports. Growth was also held back by businesses stepping up efforts to reduce unwanted merchandise clogging up warehouses. Looking at the broader picture, GDP was up 2%, when considering the change from the year to March last year, to the year to March this year.

Staying in the US, the home ownership rate has nearly fallen to a 48-year low. It inched down to 63.5% in the first quarter, from 63.8% in the fourth quarter of last year (not seasonally adjusted). Twice as many new renter households, compared to new owner households, were formed at the start of the year, compared to the same time last year. With the US home ownership rate pretty much identical to the rate here, it seems those in the US are also struggling to crack into the housing market.   

The Bank of Japan has dashed investors' hopes for a boost in its stimulus efforts, sending stocks plunging. It's left interest rates unchanged and held back from expanding its big asset purchasing programme, despite it falling back into deflation. The bank's move saw the yen surge more than 3% against the US dollar - its biggest one-day gain in six years. 

In other news, the Chinese government has upped the ante, controlling the influence foreigners have on Chinese society. It's passed a new law obliging foreign NGOs to have official Chinese sponsors and register with the police. Around 7000 organisations will be affected by this law, which may see those promoting workers' rights, ethnic equality and religious freedom, have a hard time getting approval. 

In New York the benchmark UST 10yr yield has continued to slide today, down to 1.86%.

A weaker US dollar has seen the US crude oil price rise to US$46/bbl. Brent is up to US$48/barrel. 

The gold price has picked up to US$1,266/oz. 

The New Zealand dollar is peaking, off the back of the drop in US GDP growth, the Federal Reserve holding off a rates rise, and the RBNZ holding back on a rate cut. It's up over a cent compared to this time yesterday, to 69.7 US¢, 91.3 AU¢ and 61.4 euro cents. The TWI-5 index has jumped to 72.5.

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 ».