Financial market review for april 27 2018 vinson financials

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Financial Market Review for April 27, 2018 Economic data released through the Asian session was on the heavier side this morning, with stats including New Zealand’s trade figures for March, inflation, industrial production and retail sales figures out of Japan and wholesale price inflation numbers out of Australia. For the Kiwi Dollar, the trade deficit widened from NZ$3,070m to NZ$3,420m in March, year-on-year, with the month-on-month trade balance sliding from a NZ$172m surplus to a NZ$86m deficit at the end of the quarter. Year-on-year, goods exports increased by NZ$265m (5.8%) to NZ$4.9bn, while goods imports rose by NZ$612m (14%) to NZ$4.9bn. Milk power, butter and cheese led the export rise, up NZ$116m (11%) to NZ$12bn, with the export of logs, wood and wood articles (18%) and petroleum and products other than crude seeing a moderate increase. Exports to Australia saw the largest rise, up 11%, followed by the U.S up 5.8% and the EU, up 4.9%, while exports to China slipped 4.3% and down by 3.9% to Japan. On the import side, petroleum and products rose by a whopping NZ$297m (88%), driving the headline figure, with imports of aircraft and parts, mechanical machinery and equipment and vehicles parts and accessories also contributing. By country, imports from the U.S were up 30%, up 19% from the EU and 4.7% from China, while down by 8.8% from Japan. The March monthly deficit was the first deficit since 2008, figures released by Stats New Zealand. The Kiwi Dollar moved from $0.70628 to $0.70565 upon release of the figures, which will weigh on 1stquarter GDP numbers. For the Aussie Dollar, wholesale price inflation eased in the 1st quarter from 0.6% to 0.5% quarter-onquarter, while holding steady at 1.7% year-on-year. Supporting wholesale price inflation included rising electricity, gas and water supply prices (+3.4%); rising prices for heavy and civil engineering (+0.6%) and a 3.8% increase in prices for petroleum refining and fuel manufacturing. Partially offsetting the rise in prices were declines in prices for pharmaceutical and medicinal product manufacturing (-1.6%); commercial fishing (-10.4%) and oil and fat manufacturing (-5.5%). The Aussie Dollar moved from $0.75521 to $0.75525 upon release of the figures, before rising to $0.7555 at the time of writing, up 0.01% for the day. For the Japanese Yen, Tokyo core inflation slipped from 0.8% to 0.6% in April, with retail sales also seeing just a 1% rise in March, year-on-year, following February’s 2% rise, while industrial production increased by 1.2%, ahead of a forecasted 0.5% increase, following February’s flat finalized number.

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