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Markets bounce back from fall on trade war fears; Building approvals for Aussie apartments take hit; EU inflation expected to increase to 1.4% in March; UST 10yr at 2.79%; oil and gold stable; Bitcoin down; NZ$1 = 73.1 USc; TWI-5 = 74.4

Markets bounce back from fall on trade war fears; Building approvals for Aussie apartments take hit; EU inflation expected to increase to 1.4% in March; UST 10yr at 2.79%; oil and gold stable; Bitcoin down; NZ$1 = 73.1 USc; TWI-5 = 74.4

Here's our summary of key events overnight that affect New Zealand.

Stocks have made a roaring comeback, after slumping on news of new Chinese tariffs on US goods. The Dow Jones industrial average has traded 200 points higher, while the S&P 500 and Nasdaq composite have gained at least 1%. China’s response to US threats that its tariffs are designed to target up to US$50 billion in US products a year had sent stocks downhill.

ANZ economists note that no date has been set for the proposed tariffs. While this means negotiations are still on the table, it also means uncertainty is set to continue for months. They say central banks will need to be vocal about their willingness to respond with interest rates should tensions worsen.

Annual inflation in the European Union is estimated to have increased by 1.4% in the year to March - up from 1.1% in February. The rise was largely driven by increases in food, alcohol and tobacco prices, followed by energy and services.

Turing to Australia, the number of building consents issued in February declined faster than expected. Approvals fell 6.2% in the month, off the back of a 17.2% increase in January. The number of consents issued for apartments plummeted, while those for houses increased slightly. In year-on-year terms, the number of consents issued dropped 3.1%.

In New York, the UST 10yr yield has inched up today to 2.79%.

Gold is stable at US$1,333/oz.

Oil is also pretty much unchanged. The US crude benchmark is at US$63/bbl, while the Brent benchmark is at US$68/bbl.

Firmer consumer confidence, milk prices, and a better budget balance have seen the New Zealand dollar strengthen overnight.  It’s at 73.1 USc, 94.7 AUc and 59.5 euro cents. The TWI-5 has risen to 74.4.

The price of bitcoin has fallen by nearly $700 since this time yesterday to US$6,802.

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

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10 Comments

Why are stock markets rebounding with trade wars and interest rates on the way up, surely this can't last?

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Dead cat bounce.

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"They say central banks will need to be vocal about their willingness to respond with interest rates should tensions worsen"
Does that mean lower interest rates?

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Yip - we are witnessing the end of capitalism

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Interesting comment h&e, can you please elaborate?
Thanks

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I'm pretty sure the falls in the US market have shaken out every stop loss order. No doubt there's probably been some losses realised and margin calls made. A good time for a recovery before exploring where the new stop loss orders are.

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Barfoots come to the rescue

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The majority believe:
1) interest rates will stay low or go lower;
2) Stock markets will crash and burn at any time;
3) Housing and property will hold or just drop a bit.
These are sure signs that none of the above will hold...guaranteed trade!

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WOW, I'm in that camp, will be interesting to find out if true or not but I don't think it's the majority's opinion, certainly not on this site

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Just wait for some nice juicy tariffs on US dairy into China...

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