Daily Market Digest: BoE, SNB Keep Rates Steady. US Retail Sales Disappoint

Market Summary

• New Zealand GDP rises 0.90% in Q2, less than forecast
• New Zealand Q1 GDP revised higher to 0.90%
• Australia unemployment rate falls to 5.60%
• Swiss National Bank leaves LIBOR rate unchanged at -0.75%
• UK retail sales fall 0.20% on the month in August; July revised higher
• Eurozone headline CPI confirmed at 0.20%; Core CPI at 0.80%
• Bank of England leaves policy unchanged. Interest rate at 0.25%
• US retail sales weaker than expected, down 0.30% in August
• US producer price index flat
• Weekly jobless claims rose 260k

Today’s Economic events

• New Zealand GDP q/q 0.90% vs. 1.10%
• Australia MI inflation expectations 3.30% vs. 3.50% previously
• Australia employment change -3.9k vs. 15.2k
• Australia unemployment rate 5.60% vs. 5.70%
• Australia new motor vehicle sales m/m 0.10% vs. -1.40% previously
• SNB Libor rate, -0.75% vs. -0.75%
• UK retail sales m/m -0.20% vs. -0.40%
• Eurozone final CPI y/y 0.20% vs. 0.20%; core CPI y/y 0.80% vs. 0.80%
• Eurozone trade balance 20.0bn vs. 22.1bn
• BoE leaves interest rate unchanged at 0.25%
• US core retail sales m/m -0.10% vs. 0.30%; retail sales m/m -0.30% vs. -0.10%
• US PPI m/m 0.0% vs. 0.10%; core PPI m/m 0.10% vs. 0.10%
• US unemployment claims 260k vs. 262k
• US current account -120bn vs. -120bn
• US empire state manufacturing index -2.0 vs. -0.9

Coming up

• (USD) Industrial production
• (USD) Business inventories

New Zealand Q2 GDP rises 0.90%

New Zealand’s second quarter gross domestic product increased 0.90%, data from Statistics New Zealand showed on late Wednesday. The first quarter GDP was revised higher to 0.90%. On a year over year basis, the annual GDP growth rose 2.80% in the period ending June 2016.

 

New Zealand Quarterly GDP: 0.90%, Q2 2016 (Prev.: 0.90%)

GDP increased, boosted by strong international demand leading to exports rising 4.0% with exports of goods posting the biggest quarterly jump in 20 years. Exports of dairy, meat, and fruit products also increased during the quarter. The services sector grew at a pace of 0.70%, driven by rental, hiring, and real estate services. Construction rose 0.50% with all of the sub-industries showing gains and reflecting higher construction-related investment.