Here's my summary of the key events overnight that affect New Zealand.
S&P has downgraded China’s credit rating, largely due to its debt. Lowering its sovereign credit rating from AA- to A+, the agency says “prolonged” credit growth in China has “increased its economic and financial risks”. It says the government’s efforts to “rein in corporate leverage” could stabilise things in the medium term, but it believes credit growth will remain at a risky level over the next few years. China’s outlook remains “stable”, as its economy is expected to keep performing well.
The Bank of Japan has kept interest rates on hold as expected. It has also maintained a loose pledge to keep buying bonds, diverting from the US central bank’s plan to steadily pull back from these crisis-era measures.
Reserve Bank of Australia governor, Philip Lowe, says a rise in global interest rates doesn't have any automatic implications for Australia. Interestingly, he also says there's not much more he can do to boost the economy. He says monetary policy can help stabilise the economy and make for a more predictable investment climate, but has "little influence on the economy's potential growth rate".
European Central Bank president, Mario Draghi, says those in the euro zone shouldn't look to monetary policy to tackle bubbles. He says financial and business cycles can become de-synchronised in a low inflation environment, and monetary policy is not the right instrument to address these financial imbalances.
New data shows manufacturing conditions in the US's mid-Atlantic have accelerated this month, suggesting an economy picking up steam. The Philadelphia Federal Reserve's manufacturing index has risen to a reading of 23.8, a three-month high, from 18.9 in August.
In New York, the UST 10yr yield has risen since this time yesterday to 2.26%.
The price of crude oil is stable at just under US$51 a barrel, while the Brent benchmark is just over US$56.
The price of gold is down again to US$1,293/oz.
The New Zealand dollar has fallen a little to 73.1 US cents. It’s up to 92.1 AU¢, and down to 61.3 euro cents. The TWI-5 index is at 75.3.
All eyes are on the New Zealand and German elections this weekend.
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 ».