Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search


HiFX morning Update, January 23 2019

NZDUSD 0.6726 0.0%
NZDEUR 0.5919 0.0%
NZDGBP 0.5188 -0.6%
NZDJPY 73.47 -0.4%
NZDAUD 0.9435 0.4%
NZDCAD 0.8975 0.3%
GBPNZD 1.9275 0.6%

The British pound is the standout performer overnight helped higher on stronger-than-expected economic data.

Early yesterday evening the UK the Office for National Statistics employment report for the month of December showed employment increased by 141k jobs to a record high of 32.54 million well ahead of the expected 87k jobs increase. UK employment now sits at 75.8% its highest level since records began in 1971. Unemployment in the three months to November fell to 4.0% down from 4.1% in the previous 3-months, market expectations were for unemployment to remain unchanged. Novembers average weekly earnings, including bonuses, rose by 3.4% on the year, the largest increase in a decade. The data suggests that if it weren’t for Brexit uncertainty the Bank of England would be responding to these inflationary pressures by hiking interest rates.

Global equity markets along with US treasury yields are in the red after the IMF downwardly revised its 2019 growth forecast from 3.7% to 3.5% siting a high level economic risks including “brexit” and the ongoing US China trade war as the main drivers for the downgrade. The DOW is currently down 1.5% while yield on the benchmark 10-year Treasury note fell is down 4 basis points to 2.755.

This morning the market expects NZ’s Q4 CPI to remain flat following on from Q3’s 0.9% increase which is expected to push the annual rate of price growth down from 1.9% to 1.8%. The sharp fall in energy prices during this quarter is the main catalyst for a softer result.

Global equity markets have turned negative, Dow -1.50%, S&P 500 -1.52%, FTSE -0.99%, DAX -0.41%, CAC -0.42%, Nikkei -0.47%, Shanghai -1.18%.

Gold prices are little changed trading at $1,282 an ounce. WTI Crude Oil prices are have fallen sharply overnight, down 3.0% trading at $52.59 a barrel.


© Scoop Media

Business Headlines | Sci-Tech Headlines


BNZ: Consumer Card Spending Climbing Out Of Delta Lockdown

New data from Bank of New Zealand (BNZ) shows card spending is heading back towards pre-delta lockdown levels. Spending on BNZ credit, debit and Eftpos cards has bounced back over the last three weeks and is now 14 per cent below the pre-delta lockdown average... More>>

Reserve Bank: A least regrets approach to uncertainty

The Reserve Bank of New Zealand – Te Pūtea Matua makes decisions about official interest rates in a way that is robust in the face of uncertainty about the economy, Reserve Bank Assistant Governor Christian Hawkesby says in a speech published today*... More>>

Shocking Stuff: Lower Income Areas Paying More For Power

Analysis from Consumer NZ and Powerswitch has found major differences in electricity pricing depending on where you live, with those in lower income areas being hit the hardest... More>>

Statistics: GDP rises in the June 2021 quarter

Gross domestic product (GDP) rose by 2.8 percent in the June 2021 quarter, following a 1.4 percent increase in the March 2021 quarter, Stats NZ said today. June 2021 quarter GDP was 4.3 percent higher when compared with the December 2019 quarter... More>>

Energy-from-waste: $350 Million Plant To Deliver Renewable Energy Considered

Investigations have begun into the viability of building an Energy-from-Waste plant that will safely convert 350,000 tonnes of waste, that would otherwise be dumped into South Island landfills annually, into renewable electricity... More>>

Olam: Confirms plans for commissioning of NZ dairy plant

OFI, a global leader in natural and sustainable food ingredient solutions, today confirmed plans to develop a new dairy processing facility at Tokoroa. It is now taking expressions of interest from potential farmer suppliers, employees, contractors, and general trade suppliers... More>>