Here's my summary of the key events overnight that affect New Zealand, with news that bank lending for housing is still rising strongly in Australia.
Firstly however, in the US their housing market sales volumes bounced back in July, after three months of declines. But the jump in volumes only partially recovered what had been lost in that prior quarter. Listing numbers are down but prices are up. However, the level of investor interest has fallen to its lowest level in a year, said to be due to "less homes for sale at bargain prices".
A key midwest manufcaturing survey which is closely watched was a drag on sentiment today reversing a strong June result, but a similar survey in Texas was very upbeat.
In China, both of their official PMI readings slipped a little, indicating a moderation in their expansion. The factory index was back to the level it has averaged for the past nine months, and the services measure was back to the average for the past year. Neither is cause for concern, but equally, neither indicates growing momentum.
China is famous for an outsized trade surplus - in goods. But in services, it has a large deficit, and that grew sharply in June, up by about 30%. Still, the net between them is still a surplus of almost US$17 bln in the month. (Note: the Chinese got their decimal in the wrong place in the link.)
HSBC, which has undergone a shakeup and downsizing over the past few years, has reported bumper half year results - so good, it is using its extra cash flow to buy back its shares to pump up its share price.
In Europe, their jobless rate has fallen to an average of 9.1%. That is down a whole percentage point in a year. But that average masks a very wide range. It is 2.9% in the Czech Republic and a whopping 21.7% in Greece. However, the gains seem to be being made across most EU countries.
In Australia, the spot iron ore price surged overnight in response to supply concerns, especially by China.
And despite official attempts by regulators to quell strong lending growth for housing in Australia, the latest data shows that is hardly working. Others are rushing in to fill the gap and overall lending for housing is up +6.7% in a year. It is up almost +8% for banks other than the big four. Of particular note is that corporate lending by Chinese banks in Australia is up a remarkable +23% in a year.
In New York, the UST 10yr yield is unchanged at 2.29%.
The price of oil rose again today and is now at just over US$50 a barrel, while the Brent benchmark is now just over US$52.50.
The price of gold is unchanged but holding its higher level US$1,268/oz.
The Kiwi dollar will start just slightly softer at 75 USc. On the cross rates we marginally lower at 93.9 AU¢, and at 63.4 euro cents. As a result the TWI-5 index will start today at 77.3.
If you want to catch up with all the 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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