Here's my summary of the key events overnight that affect New Zealand, with news equity markets on Wall Street are -1.5% lower today.
But first we have some important data from the US Census Bureau. American household incomes jumped in 2015, delivering the first increase in eight years, with the largest gains in the bottom fifth of earners. The overall +5.2% jump was the largest since they began releasing this data nearly 50 years ago. This is not the usual (selective) negative - and election - narrative, but it does confirm other separate survey data of rising incomes.
In China, a slew of data points reported late yesterday - from factory output to retail sales - showed rebounding economic activity in China in August after a wobbly few months. And it appears all this is being underpinned by a strong resurgence of investment spending especially by state owned enterprises. That represents a setback in their plans to rebalance to a consumer economy. The falloff in foreign investment seems pretty dramatic and keeps the overall data low. It seems the current costs of the 'rebalancing' policy are not something they want to bear.
China's plans to become self-sufficient in key agriculture products has prompted the US to take it to the WTO, accusing Beijing of rigging farm trade markets. No small irony here for New Zealanders. Still, its election season in the US.
Eurozone consumer sentiment bounced back from the post-Brexit lows. While the German components were a disappointment, the overall region saw growing optimism in this closely-watched survey.
In New York the UST 10yr yield is higher again today and now at 1.73%.
The oil price has slipped sharply in today's trading, with the US benchmark price now just under US$45 a barrel, while the Brent benchmark just over US$47 a barrel. Global oil demand growth is slowing at a faster pace than initially predicted, according to the latest IEA Oil Market Report for September.
The gold price is lower too, but less dramatically so, now just under US$1,320/oz.
The New Zealand dollar opens lower as well on a stronger US dollar. It is now at 72.6 US¢, 97.2 AU¢ and 64.6 euro cents. The TWI index is now at 76.1.
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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