Q2 terms of trade was expectd to fall 1.5%
- And the previous was +4.4%
So, at a 2.1% fall that's a miss and well under the prior result
- Export volumes +10.2% q/q (seasonally adjusted), at their highest levels since the series began in 1990.
Commentary from Stats NZ:
Its no secret that capex has been declining from the heady days of the mining investment boom, and lower expectations are a reflection of this.
- For today, the headline expected is -4%, while the prior was -5.2%
As some background (I've posted this before, its via NAB and other sources, but recapping it here):
Text from a speech Federal Reserve Bank of Boston President Eric Rosengren in Beijing
Reported by the Wall Street Journal
(Note, these have been out for a while, but I haven't seen reference to them here so doing a bit of a catch up).
This morning's Nikkei in Japan carries a quick piece canvassing some of the Bank of Japan option safter Kuroda's Jackson Hole speech
- Kuroda touted his plans for "re-anchoring" inflation expectations in his speech
Says the Nikkei:
Forex news for New York trading on August 31, 2016:
- S&P 500 down 5 points to 2171
- US 10-year yields up 1 bps to 1.58%
- WTI crude down $1.59 to $44.76
The calendar was busy on Wednesday and it started with some hawkish comments from Rosengren that put a bid under the US dollar as New York was arriving. The main event was ADP though and it left markets without any answers as it virtually met expectations.
China aimed to build 100 day of imports
Bloomberg writes about how in 2009 China outlined plans to build oil reserves of the equivalent of 100 days of net imports but has rarely talked about how much it's accumulated since.
WTI crude crumbled after EIA inventory data
triggered a rapid selloff in oil.
High US stockpiles of crude
WTI is down $1.63 to $44.71 today in the worst percentage drop since Aug 1. What was instructive was how easily it cut through the 21, 55 and 100-day moving averages along with the 38.2% retracement of the August rally and the $45 psychological level.
A list of the releases
There is enough there to get traders interest. It will be a new trading month and summer is almost over (in the northern hemisphere at least), so maybe....just maybe, the market action will pick up.
Bill Gross on CNBC
- Yes, the Fed will raise rates in September
- Pension funds must lower expectations on payments
Now on Bloomberg:
- Removing Rousseff doesn't improve Brazilian bonds
At some point, you have to wonder if Gross is talking his book. He's finding it tough to make money at the zero bound.
Brexit comments from a government spokesperson
- Brexit deal must get best deal for people ate home and for Britain abroad
- Agreed Britain should seek unique deal for Brexit, not "off the shelf" solution
The anti-Brexit crowd has been hoping to stay with some help from parliament but May will trigger Article 50, she says.