Here's our summary of key events overnight that affect New Zealand, with news the week is ending with a bit of a whimper, with overnight data giving few signals.
The update to the US's Q1 2019 economic growth brought the expected downward revision from 3.2% to 3.1% but this was less than expected.
This data shows that American inflation remains stubbornly low and that is putting pressure on the US Fed to consider reversing some of its recent rate cuts.
The American April merchandise trade balance came in at -US$72 bln for the month, massive yes but about what was expected.
Inventories in the US economy are rising, both at the wholesale and the retail levels.
But house sales fell in April, coming in below expectations and down -2% from April 2018, completing sixteen straight months of declines.
Canada's first quarter current account deficit came in pretty much as expected.
Overnight, European markets rose about +0.5% but Wall Street hasn't followed their lead and is down again today. Not by a lot, but a decline all the same turning negative in late afternoon trade. Yesterday, Shanghai fell -0.3% with similar declines in Hong Kong and and the larger Tokyo markets. All three have a market capitalisation of about US$15 tln, while Wall Street is capitalised at about US$33 tln. And to complete the picture, European equity markets including Frankfurt, London and Paris, capitalise in total at about US$10 tln.
In China, their central bank has been defending their currency, holding it below 7 to the US dollar for the past two weeks after racing toward that level. Now, with the trade war well entrenched, they are mulling whether the costs of such a defense are work it. Despite their warnings against market shorters, they could let the value slide again and quite soon.
In Australia, residential building consents were down a massive -24% in April from the same month in 2018. That is nine consecutive months of double digit percentage year-on-year falls. It is turning into a bit of a rout.
The UST 10yr yield is lower again today, now at 2.22% adding to yesterday's sharp drop. Their 2-10 curve is holding at +16 bps while their negative 1-5 curve is at -26 bps. The Aussie Govt 10yr is at 1.43% and up +4 bps. The China Govt 10yr is down -1 bp to 3.32%, while the NZ Govt 10 yr is now at 1.80%.
Gold is up +US$8 to US$1,289/oz.
US oil prices are sharply lower today, down by more than -US$2 and are now just on US$56.50/bbl. The Brent benchmark is at US$66.50/bbl. A slowing US economy is using less crude oil and stocks of petrol are jumping.
The Kiwi dollar will start today unchanged at 65.1 USc. On the cross rates we are also stable at 94.2 AUc. Likewise the euro we are still at 58.5 euro cents. That holds the TWI-5 at 70.3.
Bitcoin is marginally softer today at US$8,620. 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 ».
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