Here's my summary of the key events overnight that affect New Zealand with news a US rate hike in December is now locked and loaded.
The latest US Fed review has them holding their rates unchanged today and continuing with their balance sheet 'normalisation'. But they also signaled a December rate hike is all but locked in.
Earlier, the pre-cursor ADP employment report was released showing very strong private employment gains in October, up +235,000 and the highest since April. (The gain in October 2016 was just +147,000.)
However, the closely-watched ISM PMI came in somewhat below expectations, although at 58.7 that index shows a rapid rate of expansion in American factory orders, production and backlog. The rival Markit PMI came in with a sharp improvement, and similar surveys for Canada showed little change, but the one for Mexico showed a sharp drop following their recent earthquakes.
Underpinning factory activity are vehicle sales and that was a mixed bag in October. However America's love affair with high-margin pickup trucks and SUVs remained in full bloom as larger, pricier vehicles fared better than passenger cars.
The rate of growth in global airfreight slowed marginally in September, up +9.2% from the same month a year ago, a moderating from previous month's expansions. Growth in the Asia/Pacific region was up +9.3%. Early signs are that passenger travel is still growing strongly, especially in the US.
HSBC is under investigation in Britain over its role laundering money for the powerful South African clan, the Guptas.
In Australia, their Government is reportedly ready to force banks to contribute to the 'positive' credit reporting database. Banks have been dragging their feet because this information will be used by rivals to target their best customers. However, after many years of avoiding it, they will now be forced into line with action required by July 1, 2018. Their Productivity Commission has declared the move will be a 'game changer' for customers, opening up better deals and lower rates for many.
In New York, the UST 10yr yield is lower today at 2.35%. Across the Pacific, Chinese Govt bond yields slipped even more with their 10 yr now down to 3.88% - and their 5 year is now now at 3.92%.
The price of crude oil is lower today, now just over US$54 / barrel, while the Brent benchmark is just over US$60.50.
The price of gold is up +US$6 at US$1,273 oz.
The Kiwi dollar is higher as well. We are now at just under 69 US¢. And on the cross rates we are at 89.9 AU¢, and against the euro at 59.3 euro cents. That puts the TWI-5 index just on 72.2, boosted by our very good employment numbers yesterday.
And finally we should note that the bitcoin price has risen to a new record high of US$6,600 and a +15% rise in one month.
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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