Stocks, US$ fall on US double dip fear; Softer Aussie mining tax likely
Bernard Hickey details the key news overnight in 90 seconds at 9 am in association with the BNZ, including news the Dow and S&P fell around 0.3% on fears the US and global economies are headed for a double dip recession.
Weak US, European and Chinese manufacturing data unnerved investors, as did signs of a soft US jobs market. Key US jobs data due tonight will be closely watched.
The US dollar also fell sharply against the euro.
The euro strengthened after the European Central Bank refunded European banks after the expiry of a key loan facility and the Spanish government managed to sell some bonds.
The New Zealand dollar broke with tradition and has opened higher this morning despite the weaker US stock markets. The weak US dollar was the driver in the NZ$ bouncing from an overnight low of 68 US cents to be just under 69 US cents in early trade.
Meanwhile in Australia, new Prime Minister Julia Gillard is set to announce a softening of the mining super tax, including raising the threshold for judging where a profit becomes a super profit, allowing more claims for depreciation and exempting the iron ore and coal industries.
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