NAFTA talks get uncertain near deadline; Canada jobs stall but wages jump; China new loans up +7.2%; Symantec stock plunges on unknown but big issue; UST 10yr 2.97%; oil up, gold unchanged; NZ$1 = 69.7 USc; TWI-5 = 72.2

Here's our summary of key events overnight that affect New Zealand, with news one major economy is starting to get fast-rising wages.

But first, May 18 is a key date for the renegeotiation of the NAFTA trade agreement between Canada, Mexico and the US triggered by the US President. But talks are faltering and the latest week of discussions has broken up without a deal in sight. All sides say they will resume 'soon', but the US is raising the rhetoric and the other two are tiring of the gamesmanship. If a deal isn't before Congress by May 18 (NZT), it can't be passed by them in the current session. But it is not only Mexico and Canada resisting the base urges of the US President; a powerful Republican senator crucial for a trade vote is as well. calling the President's tactics "blackmail".

In Canada, employment growth evaporated in April. Markets were expecting a gain of about +20,000 jobs but in fact a small loss of -1,100 was recorded. That was not enough to change their jobless rate, but it did mean their participation rate sagged to 65.4%. The overall result is raising a few eyebrows. Also raising eyebrows was the +3.6% rise in the average hourly rate, now at C$27.02 (NZ$30.32), and that is the fastest wage growth in six years. In the key provinces of Ontario and B.C. the average hourly wage expanded by +4.3% and +5.6% respectively. This is the first major economy where strong wage growth has started.

China added ¥1.18 tln new loans in April, according to data from central bank, ¥79.7 bln higher than in the same period a year earlier (+7.2%) and about what analysts were expecting. This is a key China metric given their commercial life is essentially based on bank debt.

And in Silicon Valley, cyber security company Symantec, which sells the Norton Anti-virus software, is in free-fall. Its reported record earnings earlier in the week, but poor future guidance. Its stock is down nearly -40% and an internal whistleblower is reported to have triggered a major investigation although it is not clear what is the issue. The suspicion is, it is not technical, rather related to accounting matters.

The UST 10yr yield is now at 2.97% and up +2 bps from the level at this time last week. The Chinese 10yr is up to 3.71% (+5 bps) while the New Zealand equivalent is at 2.75% (down -4 bps).

The VIX is back into a normal range at 12.8, falling from 15 over the week. The average index level over the past year is 12. The Fear & Greed index is also near neutral but now just on the "greed" side.

Gold markets are now closed at US$1,319/oz in New York. That is lower since this time yesterday, but pretty much unchanged this week.

Oil prices are down after yesterday's jump and are now just over US$70.50 and the Brent benchmark is now just over US$77/bbl. That is about a +US$2 gain for the week. And those higher prices spices have brought a further rise in the number of oil rigs in operation, especially in the US.

The Kiwi dollar is ending the week down at 69.7 USc and another retreat over the week; it was 70.2 at this time last week, so another fall of more than -½c. On the cross rates we are at 92.4 AUc and 58.3 euro cents. That puts the TWI-5 at 72.2.

Bitcoin is down even further at US$8,623 and that is a net fall of about -US$1,000 or -10.4% over the week. South Korean prosecutors raided the offices of Upbit, one of the world’s largest cryptocurrency exchanges, and that hasn't helped prices.

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