Facebook and Microsoft hit back at Trump's latest anti-immigrant move; Whole milk powder prices fall; North Korean jitters hit Wall Street; RBA upbeat on wage growth; UST 10yr yield sinks to 2.08%; oil and gold up; NZ$1 = 72.4 US¢, TWI-5 = 74.4

Here’s my wrap of what’s happened around the world overnight.

Dairy prices rose by 0.3% – less than expected – at the latest fortnightly GlobalDairyTrade auction. While the prices of cheese, butter and milk fat were up, powders were down. The price of New Zealand’s main export – whole milk powder – fell by 1.6% to US$3,100 per metric tonne. AgriHQ says there wasn’t much WMP bought at this event, even though there were a few more winning bidders from North Asia. It says WMP volumes are expected to increase over the next few auctions, reducing urgency from bidders to buy.

Tech giants are slamming US President Donald Trump for scrapping a programme that prevents immigrants, who were illegally brought to the US as children, from being deported. The Deferred Action for Childhood Arrivals (DACA) programme was introduced by former President Barack Obama and affects around 800,000 people, who are now mostly in their 20s. Executives at Facebook, Amazon, Apple, HP, Uber and Tesla are among those who have voiced their opposition to Trump’s move.

The Reserve Bank of Australia sees faster wage growth and interest rate rises on the horizon. Keeping its cash rate on hold, Governor Philip Lowe says the central bank hasn’t sought to “overly engineer or fine tune” an economic recovery. He says that while globalisation, competition from new technologies and economic uncertainty will keep depressing wages for “a while yet”, he doesn’t believe stagnant wage growth is a “permanent state of affairs”.

A North Korean ambassador to the United Nations says the recent “self-defence” measures by his country are a “gift package addressed to none other than US”. The US has urged the Security Council to impose the “strongest possible” sanctions against North Korea. However Russia says new sanctions are “a little premature”.

The situation in North Korea is causing jitters among investors. Wall Street’s three main indexes sank by around 1% after the first day of trading since North Korea conducted its sixth nuclear test over the weekend (Monday was a public holiday in the US).

In New York, the UST 10yr yield has fallen 9bps overnight to 2.08%. ANZ economists report these broke lower as Trump tweeted Japan and South Korea could buy more sophisticated weapons from the US.

The price of crude oil is up to US$49 a barrel. The Brent benchmark has also risen to US$53.

Gold has jumped to US$1,337/oz.

The New Zealand dollar has regained some ground today. It’s at 72.4 US cents, 90.5 Australian cents and 60.7 euro cents. The TWI-5 index is up to 74.4.

If you want to catch up with all the changes from yesterday, we have an update here.

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

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