Here's my summary of the key events overnight that affect New Zealand with news of sharp falls in Chinese stock markets.
But first in the US it is their Thanksgiving holiday today with markets closed. But the next four days will set the scene for the holiday shopping period for their retail industry.
Across the Pacific, the Shanghai Stock Exchange closed down sharply yesterday, diving to a -2.3% loss on the day. It will be a nervous opening today. Driving the fall were local 'blue chip' stocks with technology, consumer and health-care sectors recording the steepest losses on the day. The Shenzhen market fell by almost -3%. Bond yields are also causing concern.
China has issued a report saying it will need another +6,100 new passenger aircraft by 2036. But that is 'only' 15% of the total worldwide demand forecast by Boeing of +40,000 and by Airbus of +34,200 new passenger aircraft. (Freighters and military are on top of that.) Underpinning this 'must-have' stream of new orders is fuel efficiency; and for this reason alone, they will be built.
In Europe, the latest consumer confidence survey shows further strong gains. And the latest business survey is equally positive, led by Germany. That is not to say others in the region aren't showing similar gains; just not the UK.
In Australia, they want to strengthen ties in the region a new policy paper says, showing just how concerned they are about America’s wavering commitment to Asia and sharp turn away inward - and China’s growing sway.
In Adelaide, Tesla has finished building its 100-megawatt battery - within its promised time. It will be switched on in a day or so. Recall Elon Musk promised it would be ready in 100 days "or its free". It won't be; he will get the AU$50 mln subsidy fee. The contract cost has not actually been revealed (but probably about NZ$75 mln). Interestingly, he built it on the back of Samsung battery cells, rather than Tesla product.
In New York, the UST 10yr yield has ended their short holiday week down at 2.32%. But going the other way, Chinese Government 10 yr bonds are now yielding over 4%. That is up from 3.06% at the start of the year, and the highest we have seen in over three years. Shorter durations are on the rise as well.
The price of crude oil is again higher today, now just over US$58.50 / barrel, while the Brent benchmark is just over US$63.50.
The price of gold is up +US$9 to US$1,292 oz.
And the Kiwi dollar will start today a little higher again. We are now at 68.9 US¢. And on the cross rates we are at 90.3 AU¢, and against the euro at 58.1 euro cents. That puts the TWI-5 index at 71.6.
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 ».