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Tag Archives: New Zealand

As The Fed Seeks To Justify Raising Rates, Global Growth Rates Have Been Falling Off Uniformly Around The World

Sentiment indicators like PMI’s are nice and all, but they’re hardly top-tier data. It’s certainly not their fault, these things are made for very times than these (piggy-backing on the ISM Manufacturing’s long history without having the long history). Most of them have come out since 2008, if only because of the heightened professional interest in macroeconomics generated by a global macro economy that can never get itself going.What PMI’s do have going for them is that they allow us to...

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Flash PMIs Play Second Fiddle to US PCE Deflator and Accelerating Inflation

The flash November PMIs would be the main focus in the week ahead if it were more normal times.  But these are not normal times, and growth prospects are not the key driver of the investment climate.  This quarters' growth is largely baked into the cake.  The world's three largest economies, the US, China, and Japan, are likely to accelerate for different reasons in Q4 from Q3.  Europe is the weak sibling, and growth in the eurozone and UK may slow sequentially.  The fiscal and monetary...

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Euro Bounces Back, but the Turkish Lira Remains Unloved

Overview:  The US dollar's sharp upside momentum stalled yesterday near JPY115 and after the euro met (and surpassed) a key retracement level slightly below $1.1300.  Led by the Antipodean currencies today, the greenback is mostly trading with a heavier bias.  Among the majors, helped by a steadying of US yields, the yen is soft.  In the emerging market space, the Turkish lira continues its headlong plunge while the yuan softened and the Mexican peso is off.  Hungary's central bank surprised...

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The Jump in Rates Does Little for Sterling, the Canadian Dollar, and the New Zealand Dollar

Overview:  Weak growth impulses from China and a continued rise in energy prices greets the new week.  Equities are struggling.  Hong Kong, Japan, South Korea, and Taiwan fell in Asia Pacific activity.  Europe's Dow Jones Stoxx 600 is about 0.5% lower near midday, while US futures indices are also nursing small losses.  Crude is trading at new highs that puts November WTI above $83 and Brent above $85 a barrel.  Benchmark 10-year yields are mostly 4-6 bp higher.  A larger than expected jump...

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Australia and New Zealand Move in Opposite Directions

Overview: The energy complex has become a key focus, with Brent oil holding above $75 and WTI above $72.  Natural gas, which reached seven-year highs yesterday, is giving back around half of yesterday's 3.8% rally.  Rising energy prices play on fears of stagflation and also aggravate supply chain challenges.  Meanwhile, China's Evergrande restructuring and the crackdown on casinos continue to sap the strength of mainland and Hong Kong equities.  Most major bourses in the region, with the...

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Antipodeans and Sterling Bear Brunt of Greenback’s Gains

Overview:  Concern about the economic impact of the virus and new efforts by China to curb "unfair" competition among online companies has triggered a dramatic response by investors.  A lockdown in New Zealand and the Reserve Bank of Australia signaling it will respond if the economic fallout increases sent the Antipodean currencies sharply lower. New Zealand rates plunged 10 bp ahead of the RBNZ meeting later this week. Japan has also formally extended and expanded its formal state of...

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Markets Becalmed

Overview:  The US 10-year yield is hovering around 1.18% in Europe, while the on-the-run JGB benchmark yield is below zero for the first time this year.  Greek and Australia's 10-year bond yields are at new six-month lows. The softer yields saw the dollar fall to two-month lows against the yen, while the Swiss franc rose to the highest level since last November against the euro.  Equities appear to like the lower yields.  The S&P 500 set a closing record high yesterday, and, with the...

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Greenback Shows Some Resilency after Follow-Through Selling Dried up

Overview: Follow-through dollar selling stalled as key levels were approached, including $1.19 in the euro, $1.3900 in sterling, $0.7600 in the Australian dollar, and CAD1.2300. Sentiment is mixed after the greenback sold-off before last weekend despite the fastest jobs growth in 10-months.  Emerging market currencies are mixed, with the JP Morgan Emerging Market Currency Index slipping slightly.  The 10-year US Treasury yield is flat near 1.42%, while European yields are 2-3 bp softer. ...

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NZ to Ban Some Single Use Plastics, Following a Familiar Distressing Pattern

By Jerri-Lynn Scofield, who has worked as a securities lawyer and a derivatives trader. She is currently writing a book about textile artisans. New Zealand environment minister David Parker today announced plans to ban some single-use plastic products, beginning next year and phased in over three stages by July 2025. Despite its reputation as a green paradise – in part fostered by Peter Jackson’s Lord of the Rings film trilogy – New Zealand is currently one of the top 10 per-capita producers...

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Post-Holiday Blues in China While UK Sends Navy Vessels to Deter French Fishermen Blockade of Jersey

Overview: China returned from its extended May Day holiday to find fresh confrontation over its domestic and international actions.  Its equity market fell even though most of the other large Asia Pacific bourses moved higher.  European markets are heavier after the Dow Jones Stoxx 600 posted its biggest gain (1.8%) in nearly two months yesterday.  US futures are firmer, including the NASDAQ, which fell for the fourth consecutive session yesterday, its longest slide since last October.  The...

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