Here's my summary of the key events overnight that affect New Zealand, with news of some odd and random trends that may mean markets have no idea what direction the world's economy will take.
First, we start today with equities very much stronger on Wall Street. The S&P500 is up to a new all-time record high.
In Japan, their trade surplus grew to more than NZ$6 bln in October, a second straight month of improvement. This came despite lower exports and because the prices they paid for importing crude oil were very much lower. Trade with New Zealand was interesting. Although relatively small, their exports to us rose +13% in the year to October, while their imports from us fell -14%. The trade between us is now almost in balance.
In China, pollution control is getting desperate. Today, one city has forced all major industry to shut for the rest of the year as it battles to meet central government pollution regulations.
Some major commodity prices may be struggling and world trade in commodities may be exhibiting tame growth, but for some reason the old-fashioned Baltic Dry shipping index is on a tear. It has reached a two year high in trading today. Just why is not so clear.
In New York, the UST 10yr yield is just slightly lower today, currently at 2.33%.
The US benchmark oil price is up and now just under US$48 a barrel, while the Brent benchmark is now just under US$49 a barrel. This rise is being induced by more talk by producers of an output cut. Russia says it is ready to freeze output growth.
The gold price is up marginally to US$1,213/oz and just off its nine-month low.
The New Zealand dollar will start today just a little higher despite a stronger American currency, at 70.6 US¢. On the cross rates it is still at 95.9 AU¢, and against the euro at 66.6 euro cents. The NZ TWI-5 index is now at 76.4. Against the yen we are now at our highest in 2016.
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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