Bernard Hickey details the key news overnight in 90 seconds at 9 am in association with BNZ, including news the Dow rose more than 2% after better than expected US economic news and strong European bank results.
US factory output expanded in July, according to the Institute of Supply Management, although it expanded at a slower rate.
This was, however, better than economists forecasts, as was a 0.1% lift in US construction activity.
Strong profit results from HSBC and BNP Paribas overnight also boosted market sentiment.
This all helped lift the New Zealand dollar to 73.2 USc this morning from 72.8 USc late yesterday, given it often moves in tandem with the US stock market, which is seen as a proxy for global growth and therefore demand for commodities.
The oil price rose through US$81 a barrel on more buoyant hopes for global growth./
Meanwhile, Indian factory output surged again, raising expectations the central bank there will tighten monetary policy there for the 5th time in five months. Indian exports are up 30% in the last year.
However, Chinese factory output growth was slightly weaker, raising some expectations of new stimulus measures from the Chinese government.
One of the reasons for a slowing of growth in the Chinese economy is a government crackdown on the booming property development sector.
It's worth watching emerging market growth and commodity prices for signs of a surge in global inflation, given the piles of newly minted cash now sitting waiting in central bank reserves waiting to be lent and spent on scare resources.
A surge in inflationary pressures would push up inflation, although many believe the developed world's heavy debt loads will keep consumer spending, economic growth and inflation low, and even potentially cause deflation.
The outcome of this inflation vs deflation battle will determine where interest rates go. US Treasury bond yields rose from near record lows.
Your view?
No chart with that title exists.
We welcome your comments below. If you are not already registered, please register to comment.
Remember we welcome robust, respectful and insightful debate. We don't welcome abusive or defamatory comments and will de-register those repeatedly making such comments. Our current comment policy is here.