Here's my summary of the key events overnight that affect New Zealand, with news of a black-eye for Graeme Hart.
But first, there were two pieces of US labour market data out overnight, both confirming tighter conditions. Firstly the ADP employment data which is a pre-cursor to tomorrow's non-farm payrolls report beat expectations slightly with a gain of +173,000, almost all in the service sector. The market is expecting growth of +160,000 in non-farm payrolls. And secondly, claims for unemployment benefits came in a bit lower than expected for last week.
Overnight, the ECB reviewed its benchmark interest rates. As expected, it made no changes. But it did say it sees improved economic growth within the euro zone and slightly higher inflation.
Auckland's booming regional economy is getting the credit for another strong month of new vehicle sales in May. And SUVs now account for 35% of those. This data is being driven by record commercial vehicle sales for a May and light trucks for tradies are what is giving this the extra push. The Ford Ranger was top dog in May.
And on a somewhat related note, American car parts maker UCI has filed for bankruptcy mainly because it has lost some key customers who have decided to source their product from China. Why is this of interest? Well, UCI is owned by Auckland-based billionaire Graeme Hart.
In New York the benchmark UST 10yr yield has fallen sharply today and is now back to 1.81%. That shift may echo in local wholesale interest rate swap markets today. Our rates are again very flat and may get flatter.
The oil price is little changed with the US benchmark just on US$49/barrel and the Brent benchmark just under US$50/barrel. OPEC has failed to agree any supply cuts. Also, the US summer driving season is underway and that is starting out strongly. The American AA is reporting that 38 mln Americans are planning to road trips this summer.
The gold price is unchanged today, still at US$1,210/oz.
And finally, the NZ dollar will start today unchanged overall from this time yesterday at 68.1 US¢, it is at 94.3 AU¢ which is its highest level of the year, and at 61 euro cents. The TWI-5 index is now at 72.2.
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 ».