Here's my summary of the key events overnight that affect New Zealand, with news air cargo volumes show global trade is still growing nicely.
But first, the American services sector activity rebounded to almost a one year high in September, (and this) adding to positive views about the prospects for good economic growth, and bolstering the view that the Fed will raise interest rates this year.
And we get the US non-farm payroll report this Saturday and markets are expecting +170,000 new jobs in September. Today, the ADP report suggested the gain will be a bit lower at +156,000.
Today, the IMF issued its bi-annual financial stability review and noted that risks are lower than six months ago. But it warns about what it calls "medium-term" dangers in both emerging and developed economies and is particularly concerned about Europe, Japan and China. These are areas where high levels of debt and low bank strength are raising financial instability, it says. It singled out the special risks around Deutsche Bank in its side briefings, worried about its out-dated business model.
The latest data on air cargo demand is encouraging. That shows August shipments up +3.9% year-on-year, with stronger gains in both Europe and North America.
The second day of grilling an Aussie bank CEO in Canberra was more interesting. The ANZ boss was subject to a sharper examination than the CBA head, and Shayne Elliott was forced to admit that credit card interest rates are too high, and defend his decision to reinstate traders accused of rate rigging.
In New York, the UST 10yr yield has risen yet again today and is now at 1.72%. That is almost +20 bps in six days.
The US benchmark oil price is a little higher too, now just under US$50 a barrel, while the Brent benchmark is now just under US$52 a barrel. American crude oil inventory data came in lower than expected.
The gold price is down a little further today, and now at US$1,262/oz.
The New Zealand dollar is settling in to its slightly lower range with little change overnight. It is now at 71.8 US¢, and on the cross rates it is at 94.2 AU¢, and 64 euro cents. The NZ TWI-5 index is now at 75.2.
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 ».