New Zealand Trade Deficit Narrows in October

News Event

From Trading Economics: New Zealand posted a trade gap of NZD 846 million in October of 2016, compared to a NZD 904 million deficit a year earlier and better than market expectations of NZD 950 million shortfall. It was the smallest gap recorded since July when the trade balance swung into deficit. Exports went up by 2.2 percent, due to higher sales of dairies. Imports rose by 0.2 percent, led by increase in purchase of capital goods. Balance of Trade in New Zealand averaged -48.03 NZD Million from 1951 until 2016, reaching an all time high of 1157.64 NZD Million in April of 2011 and a record low of -1436 NZD Million in September of 2016. Balance of Trade in New Zealand is reported by the Statistics New Zealand.

Market Opening Wrap

In European Equity Markets stocks edged up on Thursday, remaining within a recent range, as a boost from chemical and insurance companies was partly offset by weak telecoms and utilities. The STOXX Europe 600 index was up 0.1 at 341.02, still down 0.5 percent from Tuesday's high for the week. Domino's Pizza was the top riser, up 6 percent. The company said it would step up its expansion plans after seeing a strong performance from new outlets and a positive market outlook. Thyssenkrupp fell after the steel-to-elevators group gave a cautious outlook to accompany solid full-year results. However, it was well up from lows, down just 0.5 percent, as commodities rallied.

In Currency Markets the dollar steadied after breaking past more of last year's peaks against the euro on Thursday, with only the March 2015 high of $1.0457 standing in the way of a push toward parity that banks are again saying is on the cards. The euro steadied at $1.0573 after hitting lows of $1.0518 while the dollar index also steadied at 101.57, just off the morning high of 102.05. Against the yen, the dollar gained 0.56 percent to 113.17 yen, just off an eight-month high of 113.53 hit earlier in the day. Sterling rose 0.23 percent to $1.2468. The Australian dollar held steady, with Aussie gained 0.33 percent to $0.7408, while Kiwi was little changed at $0.7005. Against the Swiss franc, the dollar held steady at 1.0156.

In Commodities Markets  oil prices were slightly higher on Thursday ahead of next week's meeting of the Organization of the Petroleum Exporting Countries (OPEC) to discuss implementation of its proposed cap on production. Brent crude futures were up 12 cents at $49.07 a barrel. U.S. West Texas Intermediate crude rose 9 cents to $48.05. Spot gold was down 0.1 percent at $1,186.60 an ounce. It fell 2 percent in the previous session and touched its lowest since Feb. 8 at $1,180.99 overnight. Spot silver rose 0.2 percent to $16.37 an ounce after falling to its lowest since June in the previous session. Platinum was down 1.3 percent at $918.50, having earlier hit a 9-1/2 month low, while palladium rose 0.5 percent to $736.50.

In U.S., Equity Markets were closed for the Thanksgiving Day holiday.

In Bond Markets the yield on Germany's 10-year government bond, the benchmark for the region, fell 2 basis points (bps) to 0.26 percent, while Italy, which has been plagued by political concerns ahead of a referendum on constitutional reform, outperformed with yields down 5 bps to 2.08 percent. In the United States on Wednesday by contrast, the two-year Treasury yield hit its highest since April 2010.

Source: Institute of Trading and Portfolio Management