Here are the key things you need to know before you leave work today.
TODAY'S MORTGAGE RATE CHANGES
AMP Home Loans have advised that their one year mortgage rate is to be cut by -10 bps to 4.19%. Their 2 year rate is rising by +14 bps to 4.29%. As this product is supplied by Kiwibank, it is possible they will be making similar changes.
TODAY'S DEPOSIT RATE CHANGES
Kiwibank raised its 6 month TD by +40 bps to 3.50%.
LEAVE WINNING
UK voters are messing with market traders heads. The count in their Brexit vote is now about 80% done (26 mln votes counted) and while it is very close, the Leave side is ahead and their advantage growing. Both leaders of the Leave campaign had actually conceded defeat earlier in the day! It is getting clearer that Leave is going to win.
MARKETS WRONG
The "best and brightest" in the financial world got it wrong. Markets did not signal a Brexit vote to Leave. This has thrown up a cred problem for the financial markets.
SUPPLY OVERHANG
New Zealand cattle supplies are now tightening as the season moves into winter and farmgate prices are expected to strengthen, according to RaboBank. However, the extent of this increase will depend on how the US market reacts. The US is awash with all types of meat.
EQUITIES FALL
Australian shares are down -3% today, Singapore is down -2.3%, Hong Kong is down -3.8%, Shanghai is -1.2% lower, and Tokyo is down -6%. This follows Wall Street where the S&P500 was actually up +1.3% earlier today. Locally the NZX is down a much more restrained -1.5%
SWAP RATES DIVE
On the basis that markets are unnerved by the UK vote, wholesale swap yields were down about -5 bps across the curve mid afternoon. But in the last 30 minutes that fall has become a collapse and are now down -14 bps for the 10yr term. Update: That drop is now -21 bps. NZ swap rates are here. The 90-day bank bill rate is up +1 bp, now at 2.35%.
NZ DOLLAR LITTLE CHANGED
Our currency wobbled a bit, firstly within a narrow range. But now, as this is written currency markets have indigestion on a Brexit re-rating. In behind this, the GBP much weaker with the NZD now worth more 52c and the last time we saw that level was October 2013. The NZD is now at 70.3 USc, at 95.5 AUc, and 63.9 euro cents. The TWI-5 is now just over 74.1 which is actually not a much of a change despite the British own-goal. Check our real-time charts here.
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