Kia ora,
and welcome to Wednesday's Economy Watch where we follow the economic events and trends that affect New Zealand.
I'm David Chaston and this is the International edition from Interest.co.nz.
Today we lead with news of dull economic data but worrying political moves that undermine democracy.
Equity markets are treading water worldwide.
But first, American existing home sales were soft in September, falling -2.2% from August and undershooting most analyst expectations. But they were up +3.9% from a year ago.
The next regional Fed survey of manufacturers, this one from the mid-Atlantic states by the Richmond Fed reports a pickup in activity, and by more than expected. However, most of this just makes back the rather sharp falls in September.
Also undershooting expected outcomes was Canadian retail sales data for August. And their loan officer survey shows that their mortgage market is turning lower and tougher.
The Canadian election has returned the Liberal incumbent, although into a minority government situation. But just like its neighbour to the south, this result is marred by not mirroring the popular vote.
In the trade war skirmishes, the China is using tariff waivers to manipulate US election campaign sentiment. It has granted them to Chinese buyers allowing them to buy huge amounts of soybeans. It seems they have concluded, like Russia, keeping the current US president in office is a goal, a gift that keeps on giving for China's influence internationally.
And China is extending its surveillance reach internationally, through iPhone and Android hacks that allow it to monitor anyone now.
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In the UK, there are important Brexit votes imminent in their Parliament. We will update this item when definitive results are available. Meanwhile the political threats and brinkmanship continue.
In Australia, major home loan lender Westpac has reduced its deposit requirements for residential investor lending from 20% to 10% even for interest-only loans. It is a significant initiative to win a greater market share in this segment.
The UST 10yr yield is holding higher, although down a tick from yesterday at 1.79%.
Gold is unchanged overnight to US$1,484/oz.
US oil prices are firmer today, now just over US$54/bbl. The Brent benchmark is just over US$59.50.
The Kiwi dollar is firm against the greenback today, now at 64.1 USc although a small slip from where we left it yesterday afternoon. On the cross rates we are firm at 93.4 AUc. Against the euro we are at 57.6 euro cents. That puts the TWI-5 up at 69.
You can find links to the articles mentioned today in our show notes.
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