Here's our summary of key events overnight that affect New Zealand, with news the world's factory engines are all purring along in good shape.
But firstly in the US, consumer prices increased in January, with their PCE gauge of underlying inflation posting its largest gain in 12 months. This is a measure the Fed takes seriously.
Also indicating higher future prices are the latest PMI surveys. The ISM one noted factory prices are increasing at a faster rate, adding to a 24 month trend. The overall PMI result indicated a faster expansion in this sector.
The global series of Markit PMIs showed the US factory sector expansion down a tad but still in a strong expansionary mode. The flow of new orders however was quite strong. Price pressures are up. But before we get too carried away by these results we should note that their level of optimism in this data was below the long-run series average.
Other countries had stronger results. The EU PMIs are more than +3 points higher, and the Japanese ones are still rising. The global consolidated review of 42 of the largest countries shows a healthy solid expansion underway across in every one of them, except Malaysia. The immediate future of global trade seems assured from an activity point-of-view.
However, the US President verbally indicated that new tariffs on steel (25%) and aluminium (10%) will be formally announced soon. These are lower than originally indicated, and the process for imposing them may be slow.
China is growing its commercial business numbers fast. It is adding 55,000 per day, up from 36,000 just five years ago. Sometime in the next new months, they will be reporting there are more than 100 million businesses operating in the country.
Brazil’s economy returned to growth in 2017 after two years of contraction, as investment spending, agriculture and industrial production helped pull the country out of its worst recession on record.
In Australia, the head of banking regulator APRA told lawmakers in Canberra that its 10% 'speed limit' cap on lending to property investors is "probably reaching the end of its useful life". It has now been three years since it was introduced and he suggested it has become "redundant" as bank lending standards had improved, while credit growth had dropped sharply.
And staying in Australia, the head of KPMG has said it is 'not practical' to ban sex between partners and staff - even as they claim they have 'zero tolerance' for inappropriate workplace conduct'.
In New York, the UST 10 yr yield is down -5 bps to 2.84% today, with the rate of drop rising in the last hour. Update: It has dropped sharply further and is now 2.80%.
The gold price is down a significant -US$12 to US$1,306/oz today.
Oil prices are also sharply lower today with the US benchmark now just under US$61/bbl and the Brent benchmark over US$63.50/bbl.
The Kiwi dollar will start today a little higher from yesterday at 72.5 USc. On the cross rates we are at 93.5 AUc and at 59.5 euro cents. That puts the TWI-5 marginally up at 73.9.
Bitcoin is now at US$10,877, up +3.6% from this time yesterday.
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The easiest place to stay up with event risk today is by following our Economic Calendar here ».
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