Here's my summary of the key events overnight that affect New Zealand with news of a strong rise in the global trade in goods.
Economic growth in the US in the September quarter was revised higher today. Originally it was estimated at +3.0% but today's second estimate shows it growing at a +3.3% annual rate.
That was helped by a strong rise in global trade. The OECD said international merchandise trade growth was up a strong +4.3% in the third quarter of 2017, with both imports and exports both rising, the highest rate of growth since the first half of 2011.
Bitcoin zoomed past US$11,000 to hit a record high for the sixth day in a row at US$11,364 overnight after gaining more than $1,000 in just 12 hours. Then it fell, dropping -US$700 in just over an hour before rising and falling hundreds of dollars each hour. That wild behaviour is stoking concerns that a rapidly swelling bubble could be set to burst in spectacular fashion. Much of the activity is from small players who are millennials in the Far East participating in wild herd gambling. Normal market judgment is absent. But it is spectacular, a throwback to other manias, just bigger.
Meanwhile, the outgoing head of the NY Federal Reserve said overnight that they are thinking about an official digital currency. He says the technology is worthy of attention even if the activity around bitcoin is just pure speculation.
Across the Atlantic, the German inflation rate is finally stirring. The increases are across the board, but led by energy costs. It rose by +1.8% in the year to November, faster than both analysts predictions and for the prior month.
And in an action that should be noted here, a Chinese trade group has said that the total cost of credit for short term unsecured micro loans should never exceed 36% pa - and that is for both interest and fees.
And also of note here, the Aussie competition Commission is delving into their dairy industry. It has said it is especially interested in "impediments to competition for farmers' milk". Fonterra is one of the larger players in that market.
Ratings agency Fitch says yesterday's RBNZ plan to ease the LVR speed limits in the mortgage market is unlikely to reverse the cooling of the housing market or meaningfully increase banks' exposure to housing risks.
In New York, the UST 10yr yield has jumped to 2.38% following the higher US GDP report on the expectations that the Fed will be more committed to rate hikes in 2018.
The price of crude oil is down by more than US$1 today, now just under US$57 / barrel, while the Brent benchmark is just under US$63. Larger US crude stocks are behind the change in sentiment.
The price of gold is down -US$9 to US$1,283 oz.
And the Kiwi dollar is also down, especially against a rising greenback. We are now at 68.9 US¢. And on the cross rates we are at 91.1 AU¢, and against the euro at 58.2 euro cents. That puts the TWI-5 down at 71.8.
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 ».