Here’s my summary of the key events overnight that affect New Zealand.
The number of new homes sold in the US unexpectedly surged to a nearly nine-year high in July. Sales jumped 12% from the previous month and 31% from July last year. The gain came mostly from homes not yet started or still under construction, suggesting a rebound in residential construction investment.
Housing market strength should offset some of the manufacturing drag the US is experiencing. The Richmond Fed manufacturing index and Markit US manufacturing Purchasing Managers Index (PMI) have both eased. While production is rising, growth in new orders and employment are slowing.
It’s a similar story in Europe with services PMIs firm, but manufacturing PMIs easing a touch. At this stage, the eurozone’s economic recovery is looking good further to the Brexit.
In other news, China’s richest man is stepping up his push into Hollywood. Wang Jianlin has told Reuters of his plans to target the ‘Big Six’ movie studios, bringing their technology and capability to China.
His call comes further to his company Dalian Wanda Group already committing several billion dollars towards acquiring Hollywood studios. The changing nature of Hollywood – an institution so stereotypically American – is undoubtedly a space our film industry will be watching.
In New York, the UST 10yr yield has risen since this time yesterday to 1.55%.
The oil price has climbed on rumours Iran might participate in OPEC production cap talks next month. The US benchmark price is up to US$48 a barrel, while the Brent benchmark is at US$50 a barrel.
The gold price is up to US$1,340/oz.
The US dollar has slid as investors anxiously await comments from the Federal Reserve’s chair at the central bank’s annual meeting at the end of the week. The New Zealand dollar is at 72.9 US¢. It’s jumped to 95.8 AU¢, and is up to 64.5 euro cents. The TWI-5 index is at 75.8.
If you want to catch up with all the local changes yesterday, we have an update here.
The easiest place to stay up with event risk today is by following our Economic Calendar here ».