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Hello, I’m David Chaston with Ninety at nine, brought to you by interest.co.nz. This
is where you get everything you need to know in 90 seconds at 9 o’clock, including news
of a vampire in China.
But first, a big bounce in American consumer confidence is moving markets this morning
and increasing risk appetites. The closely watched Conference Board index, which had
decreased in February, jumped to 82.3 in March from 78.3 in the previous month.
Separately, the S&P/Case-Shiller composite index of home prices in 20 metropolitan areas
rose 0.8% in January on a seasonally adjusted basis. It followed a similar increase in December.
Prices have risen 13.2% from a year ago. The house price gains, driven by a shortage of
homes for sale, are bolstering household wealth and helping to support consumer spending.
The number of sales however declined in February, in separate Commerce Dept data out overnight.
That was a five month low.
In China, there is the story of a new type of bank run affecting the very largest of
their state-owned banks. Because they are limited by law in what they can pay depositors,
mobile apps from many of the bigger internet and mobile phone operators are sucking in
huge amounts of these funds with their own higher-yielding offers. The banks have said
its like a vampire draining funds. This type of challenge is a very real threat facing
most traditional banks, everywhere.
There were no significant changes to oil or gold prices overnight, and the benchmark UST
10yr is still at 2.74%.
Soon, Fonterra will announce its interim results and we will have more on that separately.
The NZ Dollar is having a late rally in the afternoon New York session on the growing
risk appetite and starts today at 85.8 USc, the Aussie is at 93.6 AUc and the TWI is up
to 80.1.
I’m David Chaston, and that was 90 at nine, brought to you by interest.co.nz.