Most China data stable but investment levels slip; new car sales up strongly; WalMart drops Visa; NZ jobs outlook strong; UST 10yr yield 1.61%; oil lower, gold higher; NZ$1 = 70.5 US¢, TWI-5 = 73.9

Here's my summary of the key events overnight that affect New Zealand, with news downward pressure is on local interest rates.

But first, most of the data out of China late yesterday came in right on market expectations and very similar to the April data, so no unpleasant surprises. Certainly, the improved pace of real estate sales in 2016 continued.

But there were two exceptions. Growth in new investment in fixed assets slipped badly and markets noticed. But perhaps there is a silver lining in this number; their high tech and service sectors attracted increased investment but there was a sharp falloff into heavy industry sectors where there is already significant overcapacity. Dealing with overcapacity is a stated goal of the central government. To soften the impact, the government has sharply ramped up investment spending in state-owned enterprises.

The other 'exception' is for May car sales in China. These were up strongly, rising +11.3% year-on-year, although only 1 in 16 was an electric vehicle.

If you are a merchant, do you think fees charged by credit companies are too high? If you do you have company: WalMart Canada thinks so too and is now refusing to take Visa cards.

Locally, the Manpower employment survey was out overnight showing a marginally softer outlook for jobs here. But the detail is interesting; what is holding things back is the FIRE sector - finance, insurance, real estate employment. Manufacturing, construction and other services are particularly strong. And that strength is now more focused on Auckland. Housing affordability may be a serious issue in the Queen City, but it is certainly where the jobs are.

In New York, the benchmark UST 10yr yield fell again in trading today and is now down to 1.61%. This will echo again in local wholesale swap markets today.

The oil price is little changed. The US benchmark is marginally lower, now just under US$49/barrel and the Brent benchmark just over US$50/barrel.

The gold price is higher however and now up to US$1,282/oz.

And finally, the NZ dollar starts today little changed from yesterday but with a hint of softness at 70.5 US¢, at 95.4 AU¢, and at 62.4 euro cents. The TWI-5 index is now at 73.9.

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 ».