Here's our summary of key events overnight that affect New Zealand, with news an attempted market rally to a more risk-on mood is fizzing today.
After starting the day more than +1% higher, Wall Street has been giving up this risk-on gain as the session develops. It is now up less than +0.4% and leaking the earlier gain. (It closed up +0.72% with a late recovery.) Overnight Europe rose about +0.7% and yesterday Asian markets were all over the place with Tokyo up an impressive +2.1%, Hong Kong breaking even, and Shanghai down a very sharp -1.5% (where offshore investors may be bailing out). (Australia was unchanged; the NZX50 up +0.6%.)
US housing starts in February came in very weak, down almost -10% from the same month a year ago. Building permits were -2% lower on the same basis. Both reversed gains in January which seemed out of place in the string of weak data we have had here for a while. Meanwhile home price growth slowed again and for the 10th straight month in January, making it a buyers market heading into their spring selling season.
And American consumer confidence fell back sharply in the latest survey, a shift prompted by more pessimistic views about current business conditions and the job market. Another regional Fed factory survey also reported a pullback in March.
In Europe, they have decided to let each member nation figure out whether to use equipment from China's Huawei for their G5 infrastructure, ignoring American demands to keep the company out of these new high-speed digital networks. But the EU is working toward a common security approach.
Economic fallout from the Christchurch tragedy has focused on a potential decline in tourism. But retailer Kathmandu is also flagging that locals may have changed their mood for retail spending as well.
The UST 10yr yield has rallied somewhat and is now just under 2.41%. Their 2-10 curve is now +15 bps while their negative 1-5 curve is at -23 bps. The Aussie Govt 10yr is up +3 bps at 1.81%, the China Govt 10yr is down -2 bps at 3.09%, while the NZ Govt 10 yr is down -4 bps at 1.89%.
Gold is lower, down -US$7 to US$1,315/oz.
US oil prices are up about +US$1 today at just under US$60/bbl while the Brent benchmark is just on US$68/bbl.
The Kiwi dollar is broadly stable at 69.2 USc. On the cross rates we are softer at 96.8 AUc. Against the euro we are up at 61.3 euro cents. That puts the TWI-5 at 73.7.
Bitcoin is down a bit more than -1% at US$3,914. This rate is charted in the exchange rate set below.
The easiest place to stay up with event risk today is by following our Economic Calendar here ».
We welcome your comments below. If you are not already registered, please register to comment
Remember we welcome robust, respectful and insightful debate. We don't welcome abusive or defamatory comments and will de-register those repeatedly making such comments. Our current comment policy is here.