Here's our summary of key events overnight that affect New Zealand, with news gritty economic data is atop today's news.
Firstly in the US, another consumer confidence survey was released overnight indicating strong levels. This survey is widely respected but is oddly different to the other main survey. Most countries, including New Zealand, have two consumer sentiment surveys and it is unusual for them to point in different directions. But the American ones do. Their multiple business surveys point in the same direction, but these two stand out by being at odds. Maybe it is just another reflection of their bifurcated society.
Meanwhile, their key house price index came in slightly lower than expectations and growth in prices under +6% for the first time in a year. So we now have a loss of momentum for price growth to match cooling volume growth.
Mexico's GDP growth came in at +2.7% year-on-year in September, the same as for June, but it was higher than markets were expecting.
In Australia, they still haven't ratified the new TPP Agreement despite their commitments to do so and time is running out. November 1 is a key date for the trade deal to come into force at the start of 2019 and Australia's ratification is the last one needed for that to happen. But the Aussies are having trouble getting their act together. Update: Australia has now completed ratification.
The Shanghai equity markets were up +1% in trade yesterday. The 'home team' is still active. Today, Wall Street is up +0.5% in early afternoon trade
China has lifted its 25 year ban on body parts of tigers and rhinos in a very retrograde step for world wildlife.
In Singapore, the head of their sovereign wealth fund is warning that credit excesses and their property markets are the two of the big challenges facing China. He says key tasks for the country include the ongoing shift from investment to consumption, improving corporate governance, controlling pollution, and reducing poverty. Progress is uncertain on most of these, so risks are elevated.
Economic growth in the EU slipped to +1.7% in the September quarter, down from +2.2% in the June quarter. This was not helped by results from France, or Italy. The Germany result is yet to be released publicly and is not due until November 15.
Economic sentiment in the EU, the combining of their consumer and business surveys, is turning decidedly lower mainly because of dipping business sentiment.
German unemployment fell below 5% for the first time since reunification and for the first time ever they reported their workforce grew past 45 mln people. Consumer prices rose +2.5% in October, and that was higher than expected.
Italy's economy actually came to a standstill in the third quarter of the year, registering no growth at all. Confidence is leaking away in their new radical and disorganised coalition government.
The UST 10yr yield is unchanged at 3.10%. But their 2-10 curve has slipped to under +26 bps. The Aussie Govt 10yr is at 2.59% (up +1 bp), the China Govt 10yr is at 3.54% and unchanged, and the NZ Govt 10 yr is also unchanged at 2.55%.
Gold is at US$1,223/oz a dip of -US$2/oz.
US oil prices are softer again today at just over US$66/bbl. But the Brent benchmark are just over US$76/bbl. Rising supply and falling economic growth are factors pushing the price lower.
The Kiwi dollar is starting today a little firmer at 65.6 USc. On the cross rates we are at 92.3 AUc, and at 57.8 euro cents. That puts the TWI-5 up to 70.2.
Bitcoin is unchanged today at US$6,282. This rate is charted in the exchange rate set below.
This chart is animated here.
The easiest place to stay up with event risk today is by following our Economic Calendar here ».
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