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US data mixed; EU announces NZ$½ tln fiscal 'investment'; usual suspects sued over precious metals price fixing; oil lower; UST 10yr yields down; NZ$1 = 78.8 USc, TWI = 78.5

US data mixed; EU announces NZ$½ tln fiscal 'investment'; usual suspects sued over precious metals price fixing; oil lower; UST 10yr yields down; NZ$1 = 78.8 USc, TWI = 78.5

Here's my summary of the key news overnight with news of a big new investment plan for Europe.

There was mixed data out overnight in the US ahead of their long holiday weekend. Consumer spending rose modestly in October rising at the same pace as incomes, consumer confidence rose in November to its highest level in seven years.

But a key measure of business spending plans fell for a second straight month and initial jobless claims rose, suggesting some slowing in what has been a fairly rapid pace of economic growth. Durable goods orders rose in October after two months of decline, but excluding defense components they actually fell.

Sales of new single-family homes rose for a third straight month in October, but a downward revision to the prior month's sales pace indicated the housing market progress would remain gradual.

Across the Atlantic, the head of the European Commission has given details of a NZ$500 bln investment "offensive" to kick-start Europe's economy. And the ECB has said it will decide on a full-blown QE programs "early next year".

Back in New York, Goldman Sachs and HSBC are amongst four platinum and palladium dealers being sued in for allegedly fixing the price of the metals.

UST 10yr bond yields have fallen sharply in trade earlier today and are now at 2.23%. We also saw notable falls in wholesale swap rates in New Zealand yesterday and they are likely to happen again here today.

The oil price fell again overnight on OPEC disagreement. It has fallen to under US$74/barrel and the Brent price is now about US$78/barrel.

The gold price which is now at US$1,197/oz.

The NZ dollar starts today regaining all it lost yesterday, especially against the sagging Aussie. We are currently at 78.8 USc, 92.3 AUc which is a four month high, and the TWI is at 78.5.

If you want to catch up with all the changes from yesterday we have an update here.

The easiest place to stay up with today's event risk is by following our Economic Calendar here »

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2 Comments

"EU investment offensive"? driven by notorious tax optimizer Monsieur Juncker? Meaning more unused airports like in Valencia, more unused freeways like all over the place in Spain and Portugal, more roads like the notorious A3 from Salerno to Reggio in Italy which after 30 years' construction time is still not finished as the project is systematically milked by the mafia.

 

What a joke. Europe needs innovation, structural change, or at least English teachers that deserve their job title so that young people along the entire Southern fringe can maybe even one day sell stuff or services on world markets. At the moment, nearly nobody there speaks English.

 

Europe does not need any more print-money-and-spend programs which make its totally corrupt elite even richer and leave the rest short-changed. 

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NZ's back to Aussie 92.5 so time to transfer the holiday funds for the summer ...

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