Thu, Jun. 9, 2:53 AM
- The New Zealand dollar surged to a one-year high overnight after the Reserve Bank of New Zealand kept interest rates unchanged at 2.25%, surprising some investors who had been betting on a rate cut.
- The kiwi was up 1.7% at $0.7140 and climbed to $0.7148 at one point, reaching a high not seen since June 2015.
- RBNZ Governor Graeme Wheeler said later at a media conference the bank would not hesitate to adjust interest rates if needed.
- ETFs: ENZL
Thu, Mar. 10, 2:50 AM
- An unexpected rate cut by New Zealand's central bank (by 25 bps to 2.25%) triggered a big slide in the kiwi today and sparked talk of a global currency war as countries look to revitalize their economies in a world of slow growth.
- The move follows the BOJ's historic decision in January to adopt negative interest rates and comes ahead of the ECB's policy review where it is expected to cut rates deeper into minus territory.
- Meanwhile, South Korea's won weakened slightly after the Bank of Korea opted to keep its benchmark interest rate unchanged at 1.5%, although that decision was mostly anticipated.
- ETFs: EWY, ENZL, KF, KEF, KORU, DXKW, HKOR, FKO, DBKO, QKOR, HEWY
Wed, Mar. 9, 3:54 PM
- "Further policy easing may be required to ensure that future average inflation settles near the middle of the target range,” says Reserve Bank of New Zealand Governor Graeme Wheeler, as the bank lowers its official cash rate by 25 basis points to 2.25%.
- Prior to the move, only about one out of three polled analysts had expected a cut.
- The move is especially interesting given hawkish comments Wheeler made just last month. Today's cut could mean the central bank in the past few weeks has seen something the official economic data (which have been strong) aren't showing.
- ETFs: ENZL
Dec. 9, 2015, 3:57 PM
- The Reserve Bank of New Zealand in 2015 has reversed all of the tightening it pushed through in 2014 with today's cut of its official cash rate by 25 basis points to 2.5%. It's the fourth rate cut this year.
- Inflation at 0.4% is sitting well below the central bank's target range of 1-3%.
- About two-thirds of surveyed economists had expected a rate cut today.
- ENZL +2% on the session, -9% YTD.
Oct. 6, 2015, 3:46 AM
- After five years of talks, a dozen nations across the Pacific Basin clinched an agreement on Monday that will reduce tariffs in countries making up 40% of the global economy.
- Negotiators worked round the clock over the weekend to settle many tough issues surrounding the Trans-Pacific Partnership, including auto trade, dairy exports and monopoly periods for next-generation drugs.
- News of the accord also helped trigger today's modest bounce across Pacific bourses involved in the TPP: Australia +0.3%, Japan +1%, Malaysia +0.7%, New Zealand +0.6%, Vietnam +1.9%.
- ETFs: DXJ, EWJ, VNM, EWA, EWM, IAF, DFJ, DBJP, ENZL, NKY, AUSE, JOF, EZJ, JEQ, JPNL, DXJS, EWV, SCJ, KROO, HEWJ, JSC, JPP, EWAS, FAUS, QJPN, FJP, DXJT, JPMV, DXJC, DXJR, DXJH, JHDG, QAUS, DXJF, HEGJ, HGJP, JDG, JPN, HAUD
Jul. 23, 2015, 3:09 AM
- Lots of news came out of Asia and Oceania overnight: Japan's exports increased the most in five months in June, fueled by strengthening overseas demand, but imports remained subdued due to the effect of lower commodity prices.
- South Korea's economy recorded its weakest expansion in six years in Q2, recording just 0.3% growth from the previous quarter, as the country got battered by a MERS outbreak and a severe drought.
- Lastly, New Zealand's central bank cut interest rates for the second time in six weeks, stating further easing would likely be necessary to stoke inflation.
- ETFs: DXJ, EWJ, EWY, DFJ, DBJP, ENZL, NKY, KF, JOF, EZJ, JEQ, JPNL, DXJS, EWV, KEF, SCJ, HEWJ, JSC, ITF, KORU, JPP, DXKW, FKO, HKOR, DBKO, QJPN, FJP, DXJT, JPMV, DXJC, DXJR, QKOR, DXJH, JHDG, DXJF, HGJP, JDG, JPN, HEWY
May 7, 2015, 4:46 AM
- The International Monetary Fund warns the balance of risk in the Asia-Pacific region is tilted toward the downside due to rising debts and a stronger U.S. dollar.
- Although Asia is still seen as a global growth leader, the agency sees a slowing trend.
- The region is forecast to have a growth rate of 5.6% in 2015 and 5.5% in 2016, according to the new IMF survey.
- Positive factors for Asia in the near future include moderating commodity prices, strong labor markets, and solid demand from the U.S. and Europe.
- ETFs: FXI, DXJ, EWJ, TUR, VNM, EPI, EWA, EWY, INDY, EWS, ASHR, THD, EWH, SCIF, EPHE, CAF, IDX, YINN, KWEB, PGJ, EIDO, GXC, EWM, FXP, EWT, INDL, PIN, INDA, HAO, INP, EPP, INXX, YANG, VPL, TAO, CHIX, PEK, CHIQ, CQQQ, DFJ, MCHI, AAXJ, INCO, QQQC, DBJP, SCIN, ENZL, NKY, AIA, ASEA, SMIN, XPP, AUSE, EWSS, YAO, IDXJ, EZJ, JPNL, DXJS, EWV, ASHS, YXI, CN, CHXF, FCA, CHNA, CNXT, AZIA, CHII, CHIE, ECNS, KROO, SCJ, EWHS, AXJL, DVYA, CHIM, HEWJ, JSC, ITF, KBA, KFYP, KORU, JPP, FCHI, ADRA, DXKW, FKO, HKOR, EWAS, FTW, PAF, FHK, FAUS, DBKO, QJPN, FPA, JPX, FJP, JPMV, DXJT, DXJR, DXJC, QKOR, AXJS, DXJH, QAUS, JHDG, AFTY, UXJ, DBAP, AXJV, IPAC, QTWN, DXJF, PAK
Dec. 31, 2014, 11:34 AM
- Nearly all the ETFs involved are single-country funds, with 22 seeing reduced fees, and 19 increases. First up is the list of funds seeing cuts and the number of basis points:
- EWA 3 basis points, EWO 3 bps, EWC 3 bps, EWQ 3 bps, EWG 3 bps, EWH 3 bps, EWM 3 bps, EWS 3 bps, EWP 3 bps, EWD 3 bps, EWL 3 bps, ENZL 3 bps, EWU 3 bps, EWK 2 bps, EZU 2 bps, EWI 2 bps, EWJ 2 bps, SCJ 2 bps, EWW 2 bps, EWN 2 bps, EIRL 2 bps.
- Next are the funds with increases; all are by one basis point: EWZ, BKF, ECH, EEM, EIS, EZA, EWY, EWT, THD, TUR, ERUS, EPU, EWZS, MCHI, ECNS, INDA, EIDO, EPHE, EPOL.
- Previously: Vanguard lowers fees on 12 ETFs
Jul. 23, 2014, 5:11 PM
- As expected, the Reserve Bank of New Zealand continues a string of rate hikes begun in February with an increase of 25 basis points in its official cash rate to 3.5%.
- "Economic growth among New Zealand's trading partners has eased slightly in the first half of 2014, but this appears to be due to temporary factors," says the bank in its statement. Of the perky New Zealand dollar: "Unjustified and unsustainable and there is potential for a significant fall."
- ETFs: ENZL
Mar. 12, 2014, 4:45 PM
- The kiwi pops higher by 0.6% after the Reserve Bank of New Zealand becomes one of the first developed nations to tighten policy with a 25 basis point increase in its benchmark interest rate to 2.75%. The kiwi is currently buying $0.8518.
- "New Zealand’s economic expansion has considerable momentum, and growth is becoming more broad-based ... Inflationary pressures are increasing and are expected to continue doing so over the next two years."
- The iShares New Zealand Capped ETF (ENZL) is higher by 11% YTD.
Jun. 13, 2013, 11:22 PM
Dec. 31, 2012, 11:56 AM
Jun. 21, 2012, 2:01 AMNew Zealand's GDP grew a much faster-than-expected 1.1% in Q1, helped by a rise in agriculture and business services. Economists had targeted 0.5% growth. It's NZ's fastest pace of growth in nearly five years, but some strategists worry "the large rise will only cast further doubt on the veracity of the national accounts data, which have been subject to considerable revisions recently." | Jun. 21, 2012, 2:01 AM | 3 Comments
Mar. 7, 2012, 2:02 AM
Economists expect little action from a slew of Asia-Pacific rate decisions this week. Given the rise in oil prices and the easing of eurozone meltdown concerns, central banks in South Korea, New Zealand, Indonesia and Malaysia are expected to hold rates steady.| Mar. 7, 2012, 2:02 AM
Feb. 15, 2012, 1:28 AM
Consumers in New Zealand and Australia are proving fairly resilient. Despite a growth slowdown in Asia and the ongoing eurozone debt crisis, Aussie consumer confidence rose 4.2% this month to the highest level since November while retail sales in N.Z. gained 2.2% last quarter.| Feb. 15, 2012, 1:28 AM
Dec. 30, 2011, 12:38 PMWith trading desks barely staffed, someone has decided to run some stops in the currency market. The greenback takes a plunge over the past couple of hours against nearly every major currency, but particularly vs. the yen, the aussie, and the kiwi. The yen has now regained nearly all the ground lost when Japan intervened in late October to weaken it. | Dec. 30, 2011, 12:38 PM | 5 Comments
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