Here are the key things you need to know before you leave work today (or if you’re already working from home, before shutting down your laptop).
MORTGAGE RATE CHANGES
There are no changes to report today.
CHANGES IN TERM DEPOSIT RATES
Kiwibank raised some TD rates, bringing their 6-month rate to 3.35% and their 12-month rate to 4.10%. Both are slightly superior to their main rivals. The Bank of India also raised most of its TD rates.
THE SERVICES SECTOR IS RENEWED
After a good rise in the factory PMI, today the August BNZ-BusinessNZ PSI Services also revealed a “roaring” expansion during the month. BNZ warned, however: “This is a significant advance from July’s 54.4 and more so from July’s initial reading of 51.2 before it was subsequently revised higher. The index of a slowdown in July no longer applies – reinforcing our comment from last month that it is difficult to be sure of trends based on one month data. over-excitement at the apparent strength of August results August PSI was driven higher by increased activity/sales and new orders/cases. /sales of 67.1 is a hair’s breadth from an all-time high.Together with the very strong new orders index of 66.5, it indicates strong demand.
SALES OF TRACTORS COMPLETELY RECOVERED
New data released today on tractor registrations shows them strong, although levels a year ago were unusually low. But in the last 12 months they have almost hit 3,000 and we haven’t seen such a high since August 2019.
THE BIG LOCAL SALE
The NZX50 lost -2.0% last week in capitalization, like most other global stock markets. Many others fared much worse. Locally, the falls were led by Fisher & Paykel Healthcare (HPF, #1) which plunged -3.7% over the week. Spark (SPK#2) fell -6.4% and Fletcher Building (FBU, #10) fell -6.2%. pushpay(PPH, #29) fell -13.2%. These falls were countered by a rare Eroad (ERD#50) gain of +13.4% and Fonterra (FSF#44) +9.3%.
SWAP RATE TAKE BREATH
Wholesale swap rate are probably little changed today pending signals from Wall Street. Our charter will record the final positions. But the 90-day bank bill rate is up +5 basis points to 3.69%, a new high since January 2015. The Australian 10-year bond yield is now at 3.71% and down -1 basis point since this morning. The Chinese 10-year bond rate is up +1bp to 2.70% and its highest in a month. The New Zealand 10-year government bond rate is now at 4.06%, up +3 basis points from Friday, but below the RBNZ’s previous patch for this bond at 4.08% which was up +7 basis points. The 10-year UST is now at 3.46% and unchanged since this morning.
ACTIONS MARK TIME
The NZX50 is heading for a flat day with low turnover. The ASX200 is also marking time. Tokyo is closed today for a public holiday (Respect for the Aged Day). Hong Kong opened its week down -0.9%. Shanghai is down -0.2% in Monday morning trading. S&P500 futures suggest a -0.2% slide awaits the open on Wall Street.
At the start of Asian trading, gold is down US$6 since this morning at US$1,670/oz.
NZD BACK ON THE DOWNWARD SLIDE
The Kiwi Dollar has fallen -20 basis points since opening this morning but remains above Friday’s level. It is now at 59.7 USc. Against the AUD, we are slightly softer at 89 AUc. Against the euro, we are changing little at 59.7 euro cents. All of this means our TWI-5 is at 69.4 and down -20 basis points from this morning.
BITCOIN SUDDENLY FALLS
Bitcoin has fallen again, and quite sharply recently, and now sits at US$18,739, down -4.8% from the open this morning. Volatility over the past 24 hours remained high at +/- 3.6%.
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