Here’s my summary of what’s made headlines overnight, with news one of the deadliest suicide bombers to strike in recent years has caused devastation in Kabul. The bomb, set off at rush hour, killed at least 90 people and wounded 400. It also damaged a number of embassies in what was meant to be a secure part of the Afghani capital.
In other news, Chinese authorities are publicising how hard they’re cracking down on those who sneak money out of the country. The State Administration of Foreign Exchange has identified five of the worst offending companies, which forged contracts or invoices to remit US$226 million offshore in the last two years.
It has also named and shamed five individuals, one of which used the US$50,000 annual foreign exchange purchase quotas of 84 people to remit US$4.35 million to his own accounts in Australia and Hong Kong over a year. It fined this person a million yuan.
Over to Australia, authorities are trying to get on top of the A$40 billion black economy. The taskforce set up to advise the government on the problem is focusing on fraudulent invoicing, the country’s huge stash of $100 notes, the sharing economy and sham contracting.
New data shows inflation in Europe was lower than expected in May, at 1.4%, with core inflation at 0.9%. The European unemployment rate dipped to 9.3% in April – the lowest rate recorded in the euro area since March 2009.
US President Donald Trump is expected to follow through with his election promise and pull out of the Paris climate agreement. While his denial of climate change has attracted the support of some, it’s seen Trump clash heads with the likes of US Secretary of State Rex Tillerson. The move won’t dissolve the 195-nation pact, but will create yet another barrier between the US and the rest of the world.
In New York, the UST 10yr yield remains at 2.21%.
The price of oil has dropped nearly US$2 overnight. The US crude benchmark is at US$48 a barrel, while the Brent benchmark is at US$50.
The gold price has increased to US$1,271/oz.
The New Zealand dollar remains strong at 71 USc. As ANZ puts it, it’s “up, up and away” at 95.4 AU¢. The data flow on activity and commodity prices continues to flatter us on this side of the ditch. The dollar is at 63.1 euro cents. The TWI-5 index is at 75.2.
All eyes will be on New Zealand’s terms of trade this morning, which could hit a multi-decade high.
If you want to catch up with all the changes yesterday, we have an update here.
The easiest place to stay up with event risk today is by following our Economic Calendar here ».