Here's my summary of the key news overnight in 90 seconds at 9 am, including news European credit markets surged higher for the second consecutive day amid optimism that the eurozone debt crisis is entering a less dangerous phase. Moody’s decision not to downgrade Spain provided a boost to a market already in a rallying mood.
Reports yesterday that Spain is ready to request assistance from the ESM laid the groundwork for the rally and Finland’s Prime Minister helped with comments that Spain won’t need a full bailout but rather a "precautionary program".
In France, it looks like their government is about to bail out Peugeot Citroen by funding its struggling finance unit. That car company has seen is sales plunge recently.
In the US, housing starts surged 15% in September to their highest level in four years, a revival of an industry that was at the heart of the financial crisis.
In China, Premier Wen Jiabao said the country’s economic situation last quarter was "relatively good," a signal the report later today on Chinese GDP may show the country’s slowdown ebbing.
And in Australia, it looks like the Labor government there may be considering a state asset selloff. The AFR is reporting a key adviser recommending that more than A$200 billion of “lazy” assets owned by the federal and state governments should be sold to plug the nation’s infrastructure gap, reduce debt and lift productivity.
In late trade, US stocks are level-pegging, gold is holding after a fall, and the NZ dollar is up to 82.1 USc and 72.9 on the TWI.
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