US jobs growth rises, personal income up; US car loans struggle; Canada growth shines; Aussie apartment market teeters; UST 10yr yield at 2.39%; oil races higher, gold sinks; NZ$1 = 70.9 US¢, TWI-5 = 76.9

Here's my summary of the key events overnight that affect New Zealand, with news there are growing concerns about the Aussie apartment markets.

But first, jobs growth in the private sector in the US rose sharply in November to its second highest level in the past eleven months and +24% higher than the equivalent month a year ago. This data comes just before the next US non-farms payrolls report on Saturday. Markets are expecting +175,000 job gains in that survey which is much less than today's ADP actuals, so a better result is on the cards.

In a separate American data release, personal income rose at its fastest level in 18 months, while personal consumption expenditure rose somewhat less. The real interest in this data is the inflation component, and that was elevated at +1.7% pa, and compares with +1.3% in the same month a year ago. Deeper in the data is an unusual element that shows spending for goods up +4.7% while spending for services only rose +1.9%.

The Fed will release its important Beige Book survey in a few minutes and markets expect that to be positive.

But there is some worrying data released today too. The number of subprime auto loans slipping into delinquency climbed to their highest level since 2010 in the September quarter, and this is following a pattern very much like the months heading into the 2007-09 recession; that's according to fresh data from the Federal Reserve Bank of New York.

North of the border, Canada released its Q3 GDP growth data today, and that showed a +3.5% expansion, better than markets were expecting and better than the recent release for the US. It was Canada's best result since early 2014.

In Australia, their high-rise construction boom is turning the other way. Yesterday, data showed building approvals fell -13% in October, bucking market expectations for a +1.5% rise. The number of approvals for high-rise apartments dropped -40% to a two-year low. Bankers are worried, although no-one is saying there will be a market bust or bloodbath - at least, no-one is saying that out loud as they quickly wind back their exposures.

In New York, the UST 10yr yield is sharply higher today, at 2.39%.

The reason for that is that is that US benchmark oil prices raced higher today, up about +8% to just over US$49 a barrel, while the Brent benchmark is now just over US$50 a barrel. Discord at OPEC may have been overcome as OPEC has seemed to agree on output cutbacks. That agreement appears to reduce total OPEC output to 32.5 m/bpd at a time that demand (from OPEC and non-OPEC supplies) seems to be rising at +1.2 m/bpd. If the agreement holds, it seems likely higher crude prices will be the result.

The gold price however sank sharply, now at US$1,171/oz.

The New Zealand dollar is a little lower today at 70.9 US¢. On the cross rates it is higher at 95.8 AU¢, and against the euro up at 66.9 euro cents. The NZ TWI-5 index is now at 76.9 .

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 ».