US PMIs 'solid'; Canada household spending drops; EU PMIs stall; ECB worried; Germany cuts growth forecast; ASIC slams audit conflicts; NAB hikes rates; UST 10yr at 2.71%; oil firm, gold down; NZ$1 = 67.7 USc; TWI-5 = 72.1

Here's our summary of key events overnight that affect New Zealand, with news Europe has grabbed the spotlight overnight for all the wrong reasons.

But first, the latest PMIs for the US show a solid start to 2019, helped by faster manufacturing output growth. Their service sector however is slipping and at a four month low although still at a moderate level of expansion.

In Canada there are signs that household spending is 'falling fast'. Overall retail spending is in slight decline, but with a strong growth in the number of households analysts are concluding that per-capita spending is shrinking.

The situation in Europe is not so positive. A similar PMI survey shows business growth close to stalling at 5 year low in January with expansions in both the factory and services sector barely noticeable. New order flows are showing a worryingly downward trend.

Overnight the ECB reviewed its policy setting and left those unchanged. But Mario Draghi acknowledged that economic growth in the euro zone was likely to be weaker than earlier expected due to factors ranging from China's slowdown to Brexit.

The euro weakened. But European equity indexes generally rose about +0.5% overnight (except the FTSE100 which fell -0.4%) following Asian stocks rising a similar amount (except Tokyo, which was unchanged). Today Wall Street is down -0.3% in mid-day trade.

In the UK, business frustration with the Brexit situation is boiling over. From carmakers to aircraft production, companies seem to have had enough and the risk of a mass pullout of the UK seems suddenly higher.

In Germany, their government cut its 2019 growth outlook to just +1% from a +1.8% forecast six months ago due to weak global demand and Brexit uncertainty. German growth will pick up again in 2020 to +1.6% they now say.

In Australia, ASIC has sharply criticised the big accounting firms and the stubborn conflict of interest between their audit responsibilities and their lucrative consulting businesses. They say in some cases auditors have compromised even the "appearance of independence".

And the rate rises keep coming out-of-cycle in Australia with the NAB the latest to push up variable mortgage rates, rises of about +15 bps. They are the first major to move, following two challenger bank moves earlier.

The UST 10yr yield is sharply lower at 2.71%. Their 2-10 curve has slipped to +15 bps. The Aussie Govt 10yr is at 2.24% and down -4 bps, the China Govt 10yr is unchanged at 3.15%, while the NZ Govt 10 yr is at 2.37% and also unchanged.

Gold is down -US$5 to US$1,280/oz.

US oil prices are a little higher today at just on US$53/bbl while the Brent benchmark is just on US$61/bbl. Turmoil in Venezuela is keeping prices up even as US petroleum inventories rise.

The Kiwi dollar is marginally softer at 67.7 USc. On the cross rates, we up again against the Aussie at 95.4 AUc while also firmer at 59.8 euro cents. That leaves the TWI-5 at 72.1.

Bitcoin is at US$3,555 and little-changed from this time yesterday. 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 ».