Here's my summary of the key events overnight that affect New Zealand, with news European Central Bank (ECB) officials are sitting tight in the wake of Brexit.
The just-released minutes from the bank’s July policy meeting show policy makers are ready to launch fresh stimulus as soon as next month, but are waiting to see just how much the Brexit will rock the economy. The ECB’s president has urged investors to see the full effects of it recent policy measures, which include subzero interest rates, bond purchases and cheap loans for banks.
Over to the US, New York Fed President William Dudley is talking up the health of the jobs market, saying a rate hike next month is possible. He says two months of jobs growth has allayed concerns the market is stalling. He also points to the long-awaited return to middle-wage employment. Fed officials took a ‘wait and see’ approach to rates at their July meeting.
Manufacturing activity in the US is looking pretty average. The Philadelphia Fed’s index for business activity in the mid-Atlantic region has rebounded into positive territory in August for the third time this year. Yet its employment index has dropped to a seven-year low, while its new orders index has sunk. The Philly Fed report is a precursor to the release of US’s national manufacturing data.
Australia’s outgoing Reserve Bank governor has issued a warning on foreign investment. Glenn Stevens says Australia should welcome foreign capital that builds new assets, but should be careful about selling existing assets that don’t create new capital. He warns the flow of foreign cash into infrastructure, commercial property, shares and other assets are pushing up the value of the Australian dollar, countering the RBA’s rate cuts.
The UST 10yr yield has fallen right back to 1.54%.
The US benchmark oil price has risen again overnight to US$48/barrel, while the Brent benchmark is just below US$51/barrel.
The gold price is up to US$1,350/oz.
The New Zealand dollar has strengthened since this time yesterday to 72.9 US¢, 94.8 AU¢ and 64.2 euro cents. The TWI-5 index is up to 75.5.
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 ».
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