Here's our summary of key events over night that affect New Zealand, with news of a giant profit at a global banking giant.
But first, after three consecutive rises, today's dairy auction paused for breath, down an insignificant -0.54% and holding on to +12.9% of the 13.5% gains over the last four auctions. In New Zealand dollars today's slip was a little higher at -1.2% but still represents a 'hold'. Disappointingly, WMP prices were signaled tro rise +2.3% again by the derivatives market but in the end only managed a +0.3% firming. SMP dipped -3.0%. Today's auction won't change any payout forecasts.
Also taking a breather is Wall Street where opening prices after their Washington's Birthday holiday are lower. The S&P500 was down although right now is is back about even.
And back from the weekend, the US Treasury sold US$179 bln of securities as it works to rebuild its cash balance, with yields at its auctions of three-month and six-month debt rising to levels unseen since 2008. And more US debt will be sold later in the week, also in beefed up volumes.
Banking giant HSBC has reported a big rise in profits in 2017. It is a bank that has US$2.5 tln in assets and makes US$11.9 bln in tax-paid profit, up +245% on 2016 which was considered a tough year. It paid 30.1% in income tax this year, boosted by the impact of the new US tax measures. HSBC is nominally a British bank but it is so global that can arbitrage its position among many jurisdictions. Most of its assets and profits are based in the Asia.
In the EU, the recent strong improvements in consumer sentiment stopped in January. A further +1% rise was expected but only a decrease was measured, its first in over a year.
In Australia, their central bank says there are "pockets" of financial stress among the highly-indebted household sector, and it is closely watching how customers with interest-only loans manage when they are required to start paying back principal over the coming years. But they are playing down the threat to the overall banking system from high housing debt, saying the risks to financial stability from mortgage debt were "not particularly acute."
In New York, the UST market has opened higher and the 10 yr yield is up strongly to 2.91%.
The gold price is down sharply and now at US$1,329 a fall of -US$17.
Oil prices are holding high, with the US benchmark now just under US$62/bbl and the Brent benchmark under US$65.50/bbl.
The Kiwi dollar is little changed this morning at 73.5 USc. On the cross rates we are stable too at 93.1 AUc and 59.6 euro cents. That leaves the TWI-5 unchanged at 74.5.
Bitcoin is now just on US$11,630, up another +5.9% in the past 24 hours. And Venezuela's last-ditch effort to prevent collapse by launching a new 'virtual currency, the Petro, has begun today. That makes it cryptocurrency #1385.
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