Wall Street stumbles; US normal growth below +2%; Singapore shuts Swiss bank; Japan goes all-in; HSBC sees no fall in Chinese demand for Aussie houses; UST 10yr yield at 1.76%; oil and gold lower; NZ$1 = 70.5 US¢, TWI-5 = 74.5

Here's my summary of the key events overnight that affect New Zealand, with news Chinese demand for Aussie property is holding up.

Firstly, Wall Street is off to a poor start today because Alcoa's results, which are the traditional signal for earnings season, have come in below expectations. The nasty election campaign and the rising acceptance a rate hike will come soon is adding to the poor tone. The S&P500 is down more than -1% in early afternoon trading.

New American research shows that warmer weather is good for the jobs market, and cooler weather holds it back. This study 'explains' why surprises one way or the other in the number of new jobs being created are explained by temperature, more that storms or other factors.

And other research is suggesting that the 'new normal' growth for the US economy has slipped quite some way. The analysis says to expect +1½% to +1¾% growth as the regular baseline. If they are right, the latest GDP report of +1.4% is slightly below what has become its 'normal' expansion.

In Singapore, their authorities have ordered a Swiss merchant bank to close and fined two other banks for breaching anti-money laundering controls. The action follows an investigation into money flows linked to the Malaysian state investment fund 1MDB.

In Japan, their parliament has approved a new US$32 bln increase in fiscal stimulus measures. These will be funded by new government bonds, and the Bank of Japan has its new policy to buy such bonds at essentially zero interest. By issuing perpetual bonds, the Government can fund fiscal stimulus at zero interest without ever having to pay them back. It is likely to "do more" under such arrangements. It is hard to see how QE could get any more open-ended.

In China, there has been a rare and unusual burst of civil unrest over pension levels. More than 1,000 ex-army personnel gathered in Beijing in a demonstration that was unusual in its length and its location.

In Australia, HSBC is saying that demand for Aussie property from Chinese buyers is 'holding up' after a brief blip lower earlier in the year. Aussie tax disincentives don't seem to have made much impact there, from HSBC's point-of-view.

In New York, the UST 10yr yield is higher today, now up to 1.76%. The New Zealand wholesale yield curve steepened overnight. The short end fell in response to the McDermott speech.

The US benchmark oil price is a little lower, now just under US$51 a barrel, while the Brent benchmark is now just under US$52.50 a barrel. The signals out of Russia and their supposed support for an output cap to support OPEC became confusing overnight with their largest driller refusing to comply.

The gold price is lower as well, down -US$3 and now at US$1,254/oz.

The New Zealand dollar has slipped quite a lot overnight against all-comers - except the British pound. It is now at 70.5 US¢, and on the cross rates it is also lower against the Aussie at 93.5 AU¢, and it's at 63.7 euro cents. The NZ TWI-5 index is now at 74.5. Against the UK pound however, it is up to a record 58.2 UKp.

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 ».