US JOLTS higher; US inflation expectations dip; Canada building permits jump; China trade surplus swells; Wall Street on a tariff relief rally; UST 10yr yield at 2.14%; oil and gold down; NZ$1 = 66.1 USc; TWI-5 = 70.8

Here's our summary of key events overnight that affect New Zealand, with news equity markets are in their expected relief rally following the US-Mexico tariff suspension.

But first, US labour market data released overnight showed that while job openings fell slightly in April, a surge in hiring to a record high suggested strong demand for workers. But we need to be aware; this is April data and the bite of the trade slowdown didn't happen until May and June.

And American inflation expectations just keep on falling, a sign the Federal Reserve will be watching.

In Canada, they had a surge in approved building permits, taking it them to record highs.

China’s exports clocked up a small gain last month but imports fell sharply. Reduced oil imports, especially from Iran, was the reason. Their trade surplus swelled to almost US$42 bln May, more than triple April’s level. Their sensitive exports to the US declined -4.2% year-on-year but imports from the Americans dropped -27%. The Americans will be feeling that.

And China's foreign exchange reserves rose again, even if only by a small amount. They now exceed US$3.1 tln. This is their highest level in nine months.

Japan's economy grew at a +2.2% annual rate in the March 2019 quarter, better than preliminary data showed. A rise in capital investment is behind the improvement.

In the UK, they posted a larger an expected fall in April GDP. Brexit uncertainty got the blame there.

Equity markets are positive in trading today. Wall Street is up +0.7% on the Mexico trade relief rally and this follows a similar rise on European markets earlier. Yesterday, Shanghai was up +0.9%, Tokyo was up +1.2% and Hong Kong boomed (despite the local protests), up +2.3% in an impressive show.

The upcoming G20 meetings at the end of the month in Japan are looking like the next major market risk event, based on comments by the US President overnight.

The UST 10yr yield is bouncing back, up +6 bps and now just on 2.14%. Their 2-10 curve is little-changed at +24 bps and their negative 1-5 curve is at -13 bps. The Aussie Govt 10yr is at 1.48% and up +2 bps. The China Govt 10yr is up +1 bp to 3.27%, while the NZ Govt 10 yr is up +4 bps, now at 1.77%.

Gold is lower today giving up some of the weekend's big gains and now just on US$1,328/oz. That means it has fallen -US$12 overnight.

US oil prices are softer today. They are now just under US$53.50/bbl. The Brent benchmark is now at US$62.50/bbl.

The Kiwi dollar has stepped back a little this morning and is now at 66.1 USc and that is a -½c fall overnight. On the cross rates we are softer too at 95 AUc. Against the euro we are down to 58.4 euro cents. That pushes the TWI-5 down to 70.8.

Bitcoin is up, today at US$7,929 and a +3.5% rise overnight. The bitcoin rate is charted in the exchange rate set below.

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