Creditors approve 10.3 billion euros in the bailout package for Greece. German Ifo sentiment points to increasing business optimism, and markets await BoC rate decision.
Today’s Economic events
- Australia construction work done q/q -2.60% vs. -1.40%
- Switzerland UBS Consumption indicator 1.47 vs. 1.40 previously
- Gfk German consumer climate 9.8 vs. 9.7
- German Ifo business climate 107.7 vs. 106.9
- Switzerland economic expectations 17.5 vs. 11.5 previously
Coming up
- US HPI
- US flash services PMI
- BoC rate statement
- Crude Oil inventories
New Zealand posts a trade surplus in April
In the overnight trading session, New Zealand trade balance data released showed the merchandise trade surplus rising NZ$292 million, up from NZ$117 million in March. The trade surplus gained with exports rising NZ$116 million or about 4 percent on a year over year basis to NZ$4.3 billion. The dairy sector which includes milk powder, butter, and cheese, fell 6.70% to NZ$818 million. Imports to New Zealand increased 1.50% to an annualized NZ$58 million with an increase in consumption goods.
China was the country’s top trade partner in both exports and imports, followed by Australia.
ANZ Bank’s senior economist Philip Borkin was, however, skeptical on the data, saying that “Dairy prices look like they have found a floor at the moment, but when we look across the non-dairy components there is still some modest falls occurring in the likes of land prices and a few other components as well.†He said that the deficit could worsen as export prices continue to fall against a resilient New Zealand dollar.
German Ifo business sentiment improves in May
Greece’s creditors approved to release bailout funds worth 10.3 billion euro as part of its debt-restructuring deal. The funds are expected to be released in June of which more than 70% will be used to servicing the debt of the country while the remainder will be used towards clearing up arrears. The decision to release the bailout funds came after Greece passed austerity measures on Sunday which included cutting pension benefits and raising VAT and abolishing VAT discounts to some of the nation’s islands. The bill was passed amid strong opposition.
