Here's my summary of the key news overnight in 90 seconds at 9 am, including news manufacturing in the US grew less than forecast in March.
Both orders and production cooled, suggesting the US economy lost some momentum at the end of the first quarter as the effects of tighter fiscal policy started kicking in. The data came after the release of construction spending for February showed bigger than expected gains.
In China however, manufacturing activity increased at its fastest pace in 11 months during March, indicating that their economic recovery is continuing. Taiwan and Indonesia also posted gains.
And the threat of official controls saw new home prices in China post their largest rise in more than two years as buyers rushed to buy.
In Europe, Russia announced it won’t bail out people or companies that stand to lose money held at Cyprus’s two largest banks. Those losses could now be 60% in the largest bank for those with more than €100,000 deposited.
In Australia, it has been revealed that one car maker, GM, has received more than $2 bln in subsidies over the past 12 years to keep its operations open in the country. That is 50% more than had been previously estimated. There are three local auto makers in Australia.
The RBA will make its monthly rate decision later today and it is almost certain there will be no change.
Gold is bouncing around the US$1,600/oz level, the US oil price is higher, and the Dow has started April holding on to the impressive 3.8% gain it posted in March.
The Kiwi dollar starts today marginally higher at 83.8 USc, 80.4 AUc, and the TWI is at 76.9.
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