Here's my summary of the key events overnight that affect New Zealand, with news unofficial counts by the media indicate Donald Trump has enough delegates to clinch the Republican nomination for the US presidential election.
While Trump has had the nomination locked down for weeks, he's now received enough support by getting fence-sitting delegates on his side. He won't formally accept the party's nomination until delegates vote in July. The news comes after President Barack Obama said foreign leaders were "rattled" by Trump for good reason.
Staying in the US, the Fed is continuing to lay the groundwork for a rate rise in the next two months. Fed Governor Jerome Powell has said the economy will probably be ready for a hike "fairly soon", as it's on "solid footing". Yet he adds the uncertainty surrounding Britain's June 23 referendum on whether to leave the EU will be an argument in favour of the Fed exercising "caution". All eyes will be on a speech Janet Yellen will deliver tomorrow.
The first global code of conduct for currency trading has been published in an attempt to regain trust in an industry plagued by scandals. The code, put together by central banks and market representatives, calls for more information sharing. It says banks need to be more open to giving central banks information for policy purposes. It also sets out how dealers should deal with rumours that might move prices. The code is only voluntary.
Pending home sales in the US reached their highest level in over a decade in April, according to the National Association of Realtors. The Pending Home Sales Index, a forward-looking indicator based on contract signings, jumped 5.1% last month, putting it 4.6% above April 2015. The Association's chief economist says, "The building momentum from the over 14 million jobs created since 2010 and the prospect of facing higher rents and mortgage rates down the road appear to be bringing more interested buyers into the market."
In New York the benchmark UST 10yr yield has fallen again today to 1.84%.
The US oil price has tipped over US$50/barrel in the last 24 hours, for the first time since November. The US crude and Brent benchmarks have since eased back to around US$49.50/barrel.
The price of gold has jumped to US$1,231/oz.
The NZ dollar has weakened slightly since this time yesterday to 67.5 US¢. Data indicating softer capital goods orders in the US has seen the USD ease, yet soaring pending home sales and talk of a rates rise has buoyed the USD again. The NZD hasn't recovered against the Aussie, after Fonterra's opening milk price announcement yesterday. It's at 93.5 AU¢ and 60.3 euro cents. The TWI-5 index has eased back to 71.5.
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 ».
We welcome your comments below. If you are not already registered, please register to comment
Remember we welcome robust, respectful and insightful debate. We don't welcome abusive or defamatory comments and will de-register those repeatedly making such comments. Our current comment policy is here.