There was another positive dairy auction this morning and overall prices rose a tad less than +2.0% which was probably a bit less than expected and which was no doubt due to the -0.7% slip in the SMP price when a good rise was anticipated. However the WMP price did rise +3.7%. Coming to the rescue has been the falling NZD however.
Recall prices rose +10% at the prior event in NZD and this time the rise in local currency has been +4.6%. Fonterra's upcoming annual meeting will be full of satisfaction from their shareholders, even if this auction on its own probably won't change any farm gate payout forecast.
We are now less than 24 hours from the US Fed meeting results and markets are bracing for some pain. The current view is that the Fed will stay tackling inflation strenuously (with another +75 bps hike) and be prepared to inflict painful growth-reducing consequences to achieve their goal.
They need markets to 'know' they are serious about beating inflation no matter what the cost. Those may be costs others will pay, but this is probably their last chance to get on top of the inflation thief. Blinking now will damage their cred for a generation.
In the US they reported that new housing starts rose in August while permits for residential housing slipped slightly. Completions dipped as usual during the August holiday period. Given the softness of their housing markets at present, this data is actually pretty good.
US retail sales growth softened last week on a same-store basis, but they were still more than +10% ahead of year-ago levels.
There was a UST 20yr bond auction earlier today where the yield rose sharply from the prior event. The well-supported tender drew US$32 bln in bids for the US$12 bln on offer and the median yield achieved was 3.75% which was almost +50 bps higher than the prior event a month ago.
China reviewed its loan prime rates today but made no changes to either the 1-year (used as a base for personal lending) or the 5-year (used as a base for institutional lending).
We should also probably note that in Australia, their officials face an improving Budget situation, one that could be +AU$50 bln better over the next few years.
The price of gold will open today at US$1666/oz. This is another -US$5 below where it was this time yesterday.
And oil prices start today down -US$1 from yesterday at just under US$84/bbl in the US while the international Brent price is now just under US$90/bbl.
The Kiwi dollar will open today at just on 58.9 USc and more than -½c lower than this time yesterday, again. Against the Australian dollar we are also more than another -½c lower at 88.1 AUc. Against the euro we are down likewise to 59.1 euro cents. That all means our TWI-5 starts today at 68.6, down another -60 bps and a new two year low.
The bitcoin price is now at US$18,816 and -0.9% lower than this time yesterday. Volatility over the past 24 hours has been moderate at just on +/- 2.3%.
Source: Interest .co .nz
*** CARTOONS***
No comments:
Post a Comment