Wall Street senses rate rises, QE changes; US home sales drop as prices rise; Canada wholesale trade jumps; China launches targeted stimulus; UST 10yr at 2.97%; oil and gold down; NZ$1 = 67.8 USc; TWI-5 = 71.3

Here's our summary of key events overnight that affect New Zealand, with news benchmark interest rates are on the move higher again.

Wall Street is sensing that both the US and Japanese regulators are about to independently pull back on market support measures, the Japanese for the first time. And that is driving benchmark interest rates higher. And concerns include that the trade tensions will curb demand for US Treasuries, just at a time when they need to issue a whole lot more to fund their fast-rising Federal deficit.

One consequence of the trade dispute with Canada is that the cost of newsprint to soaring. In turn, that is killing off newspapers at a faster rate, especially tabloids.

Meanwhile sales of existing US home were soft in July, and that may be because prices are rising quicker. The number of unsold inventory is rising. Year-on-year sales volumes were -2.2% lower. But median prices are up +5.2% on the same basis to NZ$408,400 nationally and in the West the median is NZ$615,600. Foreclosures and other distress sales were 3% of the market, the lowest on record.

Canada's wholesale trade data for May came in much better than expected and a sharp recovery from the decline of the month before.

However, EU consumer confidence is unchanged in July but still well above its long-term average.

China is claiming its unemployment rate is 3.8%, a small drop from just under 4.0% a year ago.

And China has launched a series of measures to bolster its domestic economy in the face of the US tariff challenges. These include a tax cut aimed at boosting research spending, and even more debt funding for infrastructure investment. They come after some budget tightening already in place for this year.

And China has a major vaccine fraud crisis exploding right now, sure to shake confidence in officialdom.

The UST 10yr yield is rising in the New York and is at 2.97% and up +7 bps near the market close. The 2-10 curve is pushing out more positively, now at +33 bps. The Chinese 10yr is at 3.53% (up +2 bps) while the New Zealand equivalent is now at 2.84%, also up +2 bps.

Gold has fallen back today, losing all its US$7 gain at the end of trading and is now back to US$1,225/oz in New York.

US oil prices are softer today and now under US$68/bbl. The Brent benchmark is now just over US$73/bbl.

The Kiwi dollar is -½c lower on the stronger greenback at 67.8 USc. On the cross rates however we are little changed at 91.8 AUc, and at 58 euro cents. That puts the TWI-5 at 71.3.

Bitcoin is still rising and is now at US$7,738 which is up +2.8% from yesterday.

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