Here's my summary of the key news overnight in 90 seconds at 9 am, including news US manufacturing output unexpectedly contracted in June for the first time in three years.

The ISM index of US manufacturing activity was 49.7 in June, which was below the lowest forecast from economists. Anything below 50 indicates contracting activity and the index showed orders, output and exports were all falling.

See more here at Bloomberg.

Meanwhile, factory output in China and Europe also contracted in June. The HSBC/Markit survey of Chinese factory output was the weakest in 7 months, while a more official measure showed just marginal expansion at its weakest in 7 months. See more here at Bloomberg.

In Europe, the euro-zone unemployment rate rose to 11.1% and factory output measures across the euro-zone fell sharply. Spanish unemployment rose to 25%. See more here at Bloomberg.

However, European stocks gained and the Dow recovered early losses as the focus switched to the liklihood of more stimulii from both the US Federal Reserve as early as August 1 and an expected rate cut from the European Central Bank on Thursday.

The Dow closed flat and appetites for riskier assets remained in place. The New Zealand dollar hit a record high vs the euro of 63.94 euro cents this morning and was over 80.4 USc in morning trade.

However, the European summit euphoria from Friday is fading somewhat as Finland and Holland questioned whether rescue funds should be used to buy Southern European bonds. See more here at BBC.

Meanwhile, the LIBOR scandal in London deepened as the chairman of Barclays resigned and the government launched a parliamentary inquiry into banking. See more here at BBC.

And finally, NZ Herald reports a home buyer in Auckland bought a house a year ago in Orakei for NZ$590,000 and has just sold it for NZ$846,00, representing a 43% increase in price. Capital gains may have been higher due to leverage. It was all tax free.