Here's my summary of the key events from overnight that affect New Zealand.
There are question marks over how a new guideline restricting Chinese corporate investment overseas could affect the property market in this part of the world. Media across the ditch are reporting that rules specifically restricting investment in real estate and hotels could worsen the Australian real estate drop-off. 38% of residential development sites in Australia were reportedly bought by Chinese companies last year.
China’s capital controls have already slowed the New Zealand property market, so this round of crackdowns are worth keeping an eye on.
HNA, the Chinese buyer of ANZ’s UDC Finance, has also recently come under scrutiny by Chinese authorities keen to keep investment inward focused.
US President Donald Trump is expected to later today announce he’ll be deploying more troops to Afghanistan. While he has expressed scepticism over the US’s involvement in the country, he is expected to give his pro-involvement Defence Secretary the green light to set troop numbers. There are currently around 8,400 US troops in Afghanistan. The Taliban insurgent forces are still no nearer to being defeated.
Australian Prime Minister Malcolm Turnbull has hit back at North Korea for describing Australia's participation in military exercises with the US and South Korea as "suicidal". North Korea had described the move as “an illustration of political immaturity unaware of the seriousness of the current situation". However Turnbull has responded by urging the international community to "bring North Korea to its senses".
The financial world is turning its focus to a meeting of central bankers in Jackson Hole, Wyoming later this week. Credit Suisse’s chief investment officer, Michael O’Sullivan, reckons the event offers a chance for central banks to hand over the baton to governments to take on more of the burden of economic policy. He says: “While this year’s symposium offers central bankers a platform to break with the recent past in laying the ground for less generous monetary policy, it may also be a watershed event in the changing of the guard in central banking.”
The UST 10yr yield has continued to track down to 2.19%.
The oil price has fallen by nearly a dollar since this time yesterday. The US crude benchmark is at US$47.40 a barrel, while the Brent benchmark is at US$51.60.
The gold price is up a little to US$1,290/oz.
Turning to the currency market, geopolitical instability ahead of the Jackson Hole meeting has weakened the US dollar over the last couple of days. However the New Zealand dollar remains at 73.2 USc and 92.3 AU¢. It’s fallen to 61.2 euro cents. The TWI-5 index is down a notch to 75.6.
If you want to catch up with Monday's news, we have an update here.
The easiest place to stay up with event risk today is by following our Economic Calendar here ».