Here's our summary of key events overnight that affect New Zealand, with news of some chunky data surprises.
More American workers voluntarily quit their jobs in May, a sign of confidence in their labour market that analysts say will soon boost wage growth. In fact, that quit rate rose to a 17 year high to an annual rate of 3.6 mln (of the 155.6 mln employed) and a rise of 212,000, even as the number of new job openings eased down.
In surprise data, Canada's new housing starts rose sharply in June, boosted by a very large increase in multifamily units, and especially in Toronto (+65%) and Quebec (-50%). Vancouver recorded a -10% drop. Nationally, the number of single family homes started fell by -16%.
In China, factory inflation hit a six-month high of +4.7% in June partly due to rising oil costs, while consumer prices remained stable.
In the EU, they reported their house prices rose at their fastest pace in 2017 in a decade, continuing a pattern of rising growth rates since 2013.
In Germany, their influential ZEW economic sentiment survey (similar to our NZIER QSBO survey) has come in sharply negative, diving well below low analysts expectations.
In Turkey, their strongman president put a family member in charge of his Finance ministry and sharply curbed the independence of Turkey's central bank. The country's currency fell sharply almost immediately, compounding earlier falls.
The 2018 edition of the Global Innovation Index has ranked New Zealand as #22 in their 126 country world. We were ranked #21 in 2017. Australia is now ranked #20 (#23 last year) while Switzerland came out on top again. Just about every country we benchmark ourselves against did better than us. China at #17 was the only non-high-income country in the top group. It is the first time China has been in the top 20.
The UST 10yr yield is now at 2.87%, a +1 bp rise overnight. And the US 2-10 rate curve has narrowed again, now at just +28 bps. The Chinese 10yr is at 3.56% (up +1 bp) while the New Zealand equivalent has risen sharply to 2.90%, up +5 bps.
Gold is back down by -US$4 to US$1,255/oz.
US oil prices are up today and now well over US$74/bbl. The Brent benchmark is now just under US$79/bbl.
The Kiwi dollar starts today unchanged at 68.4 USc. On the cross rates we are also unchanged at 91.6 AUc and at 58.2 euro cents. That leaves the TWI-5 at 71.6.
Bitcoin is now at US$6,368 which is almost -5% lower than 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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