Here’s my summary of the key events from overnight, with news of some economic setbacks in a number of emerging markets.
However, firstly in the US, the precursor ADP report for this weekend’s key non-farm payrolls report, reveals a solid gain in employment should be expected. It was right on analysts’ expectations of a 177,000 employment gain. The non-farm payroll report covers a larger slice of their labour market and expectations for it has been for a gain of +180,000 jobs. That may get revised higher now.
And staying in the US, contract signings for home sales rose in most of the country in July and reached their second highest reading in over a decade. Only the Midwest saw a dip in contract activity last month.
North of the border in Canada, their growth took a hit in the second quarter with a -0.4% fall, although it is still +1.1% higher than the same period a year ago. Their oil sector was solely responsible for the negative reading.
In Brazil, the former leftist guerrilla fighter who became President has been impeached by the Brazilian Congress. She has struggled to control government corruption or grow their economy and faced a fractious political climate. Accentuating her woes, Brazil reported a fall in their second quarter GDP growth today of -0.6%.
India has reported economic growth of +7.1% in the June quarter, but this represents a slowing from the previous quarter and from the same quarter a year ago. Still, there have been good monsoon rains this year and the agricultural sector is expected to bolster growth in the third quarter; some say to as high as +8%.
In Macau, their growth has taken a severe tumble, falling -7.1 in the June quarter on weak gambling revenues as China’s anti-corruption drive takes it toll on the enclave. Still, that result is better than the -13.3% fall in the first quarter.
In Nigeria, they reported a -2% shrinkage of their economy, the second straight, so that puts them in recession. Their’s is an economy dominated by oil.
And, as an odd-ball item, it seems New Zealand will be the first country in the world to have pizza delivery by drones. Order it on your app and the drone will find you with your delivery.
In New York, the UST 10yr yield is unchanged at 1.57%.
The oil price is down sharply today with the US benchmark price now just over US$44.50 a barrel, while the Brent benchmark just over US$47 a barrel. Prices aren’t being helped by a relentless rise in domestic US crude production.
The gold price is down as well and now under US$1,310/oz.
The New Zealand dollar is going the other way however with a slightly firmer tone. It’s now at 72.6 US¢, 96.6 AU¢ and 65.1 euro cents. The TWI index is now up to 76.3 which is the highest it has been in seven weeks.
If you want to catch up with all the local 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 ».