Here's my summary of the key events over the weekend that affect New Zealand, with news inflation is up in both the US and the EU.
Firstly in New York, equity markets are down about -1% as they come to grips with having to live with wild policy lurches from an increasingly unstable Federal administration. Enthusiasm is turning to worry. The CBOE 'fear' index has jumped to its highest level in 5 months.
Meanwhile, American consumer spending rose faster in December as households bought cars and the cold weather boosted demand for energy. Spending on personal consumption is up +1.6% from a year ago, up +1.7% excluding food and energy. These are the US Fed's preferred measures of inflation. Combined with the recent rises in wages this is a good sign for Q1 economic growth levels.
In Canada, the official Canada Mortgage and Housing Corporation is reporting problematic housing market conditions nationally for the second consecutive quarter due to overvaluation and price acceleration. Their updated view is based on market conditions in Vancouver and Toronto where strong price growth has been spreading to neighbouring centres such as Hamilton and Victoria.
In Germany, inflation has picked up further in January, hitting its highest level in three-and-a-half years to touch the European Central Bank's price stability target of just under 2%. Interestingly, services and rents are two key categories holding the level back. Most other major components are well over 2%.
Two EU economic sentiment indicators out overnight show positive levels holding for both consumers and businesses. Both measures maintain the steady climb from 2014 lows and are at their highest levels since 2011.
In New York, the UST 10yr yield is marginally lower overnight at 2.48%.
Oil prices are a touch lower today now just over US$52.50 for the US benchmark, while the Brent benchmark is just under US$55.50 a barrel. US domestic rig counts are rising still and output ramping up fast.
The gold price is US$8 higher at US$1,196/oz
The New Zealand dollar is also higher at 72.8 US¢. On the cross rates we are at 96.4 AU¢, and against the euro at 68.2 euro cents. The NZ TWI-5 index is up today at 78.5 to a twenty-one month high.
If you want to catch up with all the changes on Friday, we have an update here.
The easiest place to stay up with event risk today is by following our Economic Calendar here ».