Here's my summary of the key events overnight that affect New Zealand with news that Wall Street is higher ahead of the next US Fed rates decision due tomorrow.
That decision is widely expected to bring a +25 bps rate hike. If it doesn't, there will be sharp market reaction. Today the UST 10 year yield has pushed up to a two month high.
In the US, business prices rose across a broad range of goods and services in November, a signaling higher price pressures at a time when consumer inflation has remained stubbornly low. Their PPI was up +3.1% in November from a year earlier, the biggest jump in nearly six years.
And firms now see their ability to raise prices as easier. In fact a survey of US small business optimism has scored near a record high on this, and the view that their taxes are about to be reduced. Hiring intentions also rose.
Ratings agency Moody's has issued a very positive review of the state of covered bonds worldwide. They say the credit quality of Australian and New Zealand covered bonds will also remain strong in 2018, underpinned by the high credit quality of issuers and the strong sovereign credit quality of the two countries. Moody's is positive about global growth prospects too.
And the OECD is reporting that the rate of unemployment in its members has finally dipped below pre-GFC levels - although to be fair, this is only held up by its European members. In absolute terms, they are still +2.5 mln people higher than in April 2008 however.
A new survey of American voters indicates they think the Washington 'swamp' is now much worse than it has ever been and it has gotten worse very quickly.
In New York, the UST 10yr yield is now at 2.42% and its highest since October 2017.
The price of crude oil is lower today, now just under US$57.50 / barrel, while the Brent benchmark is down to just over US$63.50.
The price of gold is down -US$7 at a new five month low of US$1,238 oz.
The Kiwi dollar however is holding its higher level at 69.3 US¢. And on the cross rates we are holding up too at 91.8 AU¢, and against the euro at 59.1 euro cents. That puts the TWI-5 just up further at 72.6 and its highest in over a month.
Bitcoin is now at US$17,215 and just under a new all-time record high set four hours ago. The driving force behind this bubble are millions of Asian 'investors'.
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 ».