Here's my summary of the key events overnight that affect New Zealand with news of a sharply falling New Zealand dollar.
But first, the number of Americans filing for unemployment benefits dropped to its lowest level in more than 44 years last week, as their labour market shrugged off the hurricane disruptions.
China's economy grew +6.8% pa between July and September, slowing slightly from the previous quarter but as widely expected. This rate is above Beijing's annual growth target of 6.5% for 2017. Chinese retail sales grew at a +10.3% annual rate in September.
The Hong Kong stock market fell sharply yesterday, a correction coming after recording record gains. Concerns about how Beijing will regulate their markets are growing, as are worries that interest rates are on the rise there. Some of the biggest falls were for stocks on mainland Chinese companies. The head of the Chinese central bank warned overnight of a "Minsky moment" - that excessive optimism that could spur a sudden collapse in asset prices. He is signaling a tougher line on their finance sector.
And staying in China, there are claims that the Beijing government has "foiled a coup" - language like of a Pyongyang-style purge is underway. Also underway is the drive to install Party units within all foreign companies operating there to "help foreign companies understand China".
In Spain, the Madrid government is about to do its own purge and impose tighter control on Catalonia, plunging the country into uncharted waters as they try to quell the region’s bid for independence. None of this will help the euro. But Goldman Sachs indicated overnight that it will be de-camping from London and heading to Frankfurt in response to Brexit. It is just the latest in a series of such announcements; it seems the EU has a lot to gain out of Brexit.
In Australia, their job growth and unemployment rate has improved unexpectedly to 5.3%. Their participation rate is now 65.1%. (But both are still nowhere near the New Zealand rates of 4..8% and 70.0%)
In New York, the UST 10yr yield is now at 2.33%, pretty much unchanged.
The price of crude oil is marginally softer today and now just under US$51.50 / barrel, while the Brent benchmark is just under US$57.50.
The price of gold is marginally higher, up +US$3 and now at US$1,286 oz.
And the Kiwi dollar is down almost -1½¢ on the announcement of the makeup of our new government, at 70.2 US¢. On the cross rates we are down to 89.2 AU¢, and at 59.3 euro cents. Our TWI-5 index is now at 72.8 and that is the lowest it has been since June 2016 and a -2% drop on the day. If sustained, that means New Zealand incomes have fallen when benchmarked internationally, and tradable inflation will be rising. Interest rate hikes may come sooner than previously expected.
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 ».