Here's my summary of the key news overnight in 90 seconds at 9 am, including news of the latest dairy auction results.
These results overnight were mixed. In US dollar terms it was another decline, the seventh in a row, and down 1.8%. SMP, butter and cheese were all down between 2% and 4% from the last auction. But the exchange rate fell at the same time and in NZ dollar terms there was actually a small rise in overall prices of 0.3% from the last auction.
In Europe, JPMorgan Chase, HSBC and Credit Agricole were all accused last night by the European Union’s antitrust arm of colluding to manipulate interbank lending rates.
China’s gold demand fell 18% in the first quarter as they bought fewer bars and coins, offsetting some growth in jewelry, the World Gold Council said.
World wide, investor demand in bars and coins fell sharply, EFTs stopped selling, and central banks increased their purchases modestly. Trouble in Thailand will not help gold demand.
There was some small growth in recycled gold supply but mine supply was down from the previous quarter although up from the same quarter a year ago.
In New York, the price of gold fell marginally and is now at US$1,290/oz. Oil is basically unchanged.
Benchmark UST 10 yr bond yields are at 2.52% this morning, essentially going nowhere.
US stocks however are falling and are not too far off being down 1% on the day following a number of disappointing quarterly results.
On the exchange rate, we start today with the NZ dollar lower at 85.7 USc its lowest level this month and down against most other currencies, but we are up against the Aussie at 92.7 AUc. The TWI is now at 79.8 the first time this month it has been below 80.
If you want to catch up with all the changes yesterday, we have an update here.
The easiest place to stay up with today's event risk is by following our Economic Calendar here »
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