US growth sags; US home sales drop; US car sales lower; US threatens new tariffs on China; China PMIs slump; India growth up; EU inflation down; UST 10yr at 2.89%; oil down, gold up; NZ$1 = 72.3 USc; TWI-5 = 73.6

Here's our summary of key events overnight that affect New Zealand, with news the slow sagging of the US economy extends.

Firstly, American economic growth was slightly weaker than initially thought during the fourth quarter, at +2.5% pa, and is on track to slow in the beginning of 2018.

And US pending home sales volumes cooled considerably in January to their lowest level in over three years.

Further, early reports are that American car sales in February are expected at the 1.3 mil sales level, about -2% lower than for the same month a year ago.

The US Commerce Department is threatening some Chinese aluminium firms with duties of between +50% and +100% on their products imported into the US. China's aluminium industry is having a rough ride at present.

In a worrying sign, the official Chinese PMI data slumped for February, far below January and far below analysts expectations. It's their sharpest fall in six years. Their factory sector hit a 19-month low, and the still-expanding areas of services and construction both lost momentum. Most worryingly, small and medium manufacturers reported in with contractions.

India’s economy grew at its fastest pace in more than a year last quarter. Their growth was +7.2% in the December quarter, up from +6.3% in the September quarter and +5.7% in the June quarter.

Meanwhile, EU inflation cooled further, up just +1.2% in February and down from +2.0% in the same month a year ago.

And staying in Europe, their food safety authority says most uses of neonicotinoid pesticides represent a risk to bees and will make a temporary ban permanent. These pesticides are still available in New Zealand even for domestic use.

And if the Americans widen their trade war with China to the EU, trade ministers there have agreed to retaliate. They are drawing up a list of US products to target, including orange juice and bourbon.

In Australia, the removal of work options after graduating has seen a sharp fall in foreign students applying to study there.

In New York, the UST 10 yr yield is down -3 bps to 2.89% on the GDP outlook. The rising costs of hedging are making US Treasury purchases by foreigners unattractive.

The gold price is holding its sharply lower level, bouncing up a minor +US$3 to US$1,318/oz today.

Oil prices are a lower again today too with the US benchmark now just over US$62.50/bbl and the Brent benchmark over US$66/bbl.

The Kiwi dollar will also start today little changed from yesterday at 72.3 USc. On the cross rates we are at 92.6 AUc and at 59.2 euro cents. That puts the TWI-5 marginally lower at 73.6.

Bitcoin is now at US$10,500, down -1.0% from this time yesterday.

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The easiest place to stay up with event risk today is by following our Economic Calendar here ».