Here's our summary of key events overnight that affect New Zealand, with news equity investors are rushing back into markets.
On Wall Street, stocks are sharply higher today, up more than +1% on some indexes. Some warn that this rally is a "last hurrah" before the consequences of the trade wars start to bite. Today's rises follow strong gains yesterday in Hong Kong and Tokyo, where they were up almost +1.5%, and especially Shanghai where they were up +2.5%. The NZX was one of the few equity markets that isn't feeling the enthusiasm; it fell yesterday (down -0.3%).
In other news, in India, a weak monsoon season there is having a sharp effect on rice and other plantings. El Nino may be the cause. In any case, lower agricultural output can have a major impact on India.
In China, despite being banned internationally in 2010, a growing number of factories are using CFCs as an insulation foam enabler. That has meant the ozone hole, which had been shrinking, is now not, and is at risk of expanding again.
In Mexico, their inflation rate - which had fallen sharply from +6.8% in December - has now stopped falling and turned up marginally. In June it was running at +4.7% pa.
In Japan, a fuel consumption testing scandal at Nissan is rocking the company and its reputation. It is a scandal very reminiscent of the German diesel-gate scandal that started at VW.
In England, there is growing turmoil in public policy circles over how to progress Brexit.
In Australia, new data shows the growing travails of their housing market. They may be selling about 50% of houses that come to auction (New Zealand is about 35% success rate), but it is now taking 64 days on average to sell any house in Sydney, a big rise in a year. In Melbourne, it is 48 days. The NZ equivalent is 38 days (40 days in Auckland, just 29 in Wellington).
The UST 10yr yield is back up strongly today at 2.86%, a +4 bps rise overnight. And the US 2-10 rate curve has risen marginally. That means that more than three quarters of UST issues are now trading below par. The losses have been substantial, and they are growing. It is a very big market. The Chinese 10yr is at 3.55% (up +1 bp) while the New Zealand equivalent is now at 2.85%, also up +1 bp.
Gold is up +US$4 at US$1,259/oz.
US oil prices are up today as well and now over US$74/bbl. The Brent benchmark is now over US$78/bbl.
The Kiwi dollar starts today unchanged at 68.4 USc. On the cross rates we are also lower by -½c at 91.6 AUc and at 58.2 euro cents. That leaves the TWI-5 at 71.5.
Bitcoin is now at US$6,697 which is little changed 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 ».
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