Here's my summary of the key news overnight in 90 seconds at 9 am, including news of more evidence the American economy is growing.
The US Fed's Beige Book report out a few minutes ago says the US economy expanded at a "modest to moderate" pace in most of the country between early July and late August, just strong enough to reinforce the prospect of a pullback in monetary stimulus.
With most Fed officials seemingly committed to moving away from controversial asset purchases aimed at keeping long-term rates down, investors are expecting the Fed to begin reducing the pace of its US$85 billion monthly bond buys at their next meeting on September 19.
The IMF however is worried about what tapering will do to emerging economies.
Meanwhile, Americans bought more foreign cars, toys and household appliances in July, confirming a strengthening domestic economy, while slower growth abroad tempered demand for US exports. Their trade deficit widened to US$39 bln, slightly more than was expected.
Gold has slipped back below US$1,400/oz again, and the Dow is up more than ¾% in late trade as the Beige Book and trade data boosted confidence. This has been supported by very good August car sales data; in fact it has been their best month in six years with almost 1.5 million new vehicles sold in the month. US Treasury yields are rising again.
As the Aussie election gets close, the final costings are being released, and the final analysis of the political teams published. It seems the voters there are entrusting their Government to ex-rugby front rowers.
The NZ dollar starts today at 79.2 USc, the Aussie is at 86.3 AUc, and the TWI is up almost 100 bps since this time yesterday at 74.8.
Later today, the Treasury is to auction NZ$300 mln of inflation-indexed bonds. The last one was heavily oversubscribed and had a real yield of 1.96%.
The easiest place to stay up with today's event risk is by following our Economic Calendar here »
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