Here’s my summary of the key events overnight that affect New Zealand, with news that all eyes will be on Glenn Stevens this afternoon in Sydney (well maybe that is a bit of a stretch – Melbourne may be the real focus – but Stevens will clear up a major market puzzle).
But first, in the US construction spending in September rose strongly to its highest level since March 2008. Economists expect this data will raise the Q3 GDP number when it is revised later in the month.
In China, they have rolled out their first large passenger aircraft in decades, with a goal to challenge Boeing and Airbus. Their C919, with 168 seats and range of 4,000 kms, came off the assemby line late yesterday. Its first test flight is not until 2016, but the unveiling was seen as having huge industrial significance. China’s ambition for commercial aircraft spans the whole range.
And staying in China, the recent announcement of a shift to a two child policy is being seen as a very positive signal for dairy companies.
And there is a serious echo developing in the VW emmissions scandal. France, along with many European countries, gave tax breaks for diesel engines, and is about to host a major UN climate change conference. But Paris is suffering from serious smog issues, particularly bad yesterday. And diesel particulate is being blamed. The contrast to major American cities, for example, where air quality is its cleanest it has been in decades, is stark.
Later today, we will get the local QV house price data for October, and just before the Melbourne Cup is run, the RBA’s governor Glenn Stevens will announce the results of his review of the Australian cash rate target. Markets are quite unsure whether he will cut or hold.
In New York today, the UST 10yr yield benchmark rose and is now at 2.17%. Stocks are rising on Wall Street as well with the S&P500 up +0.7%.
But the US benchmark oil price has fallen today, now at US$46/barrel, and the Brent benchmark is at US$49/barrel.
The gold price also fell, now at US$1,133/oz.
The New Zealand dollar starts today slightly softer at 67.4 US¢, at 94.4 AU¢, and at 61.1 euro cents. The TWI-5 is at 72.5.
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 »