Bernard Hickey details the key news overnight in 90 seconds at 9 am with Bank of New Zealand, including news Gold hit a record high over US$1,600/oz as investors hunted around for safe havens amid renewed concerns about sovereign debt crises in Europe and America.
Demand for Swiss franc was also strong as investors tried to avoid euros and US dollar assets.
Concerns continue to mount about the stability of Europe's financial system ahead of a crisis meeting of European Finance Ministers on Thursday to decide on the details of a second Greek bailout plan to try and avoid a sovereign default of Greece.
Greece simply has too much debt and will at some stage need a restructure. European officials are trying to force private banks to take voluntary haircuts or losses on their Greek bonds, but this would be deemed a default. The European Central Bank has warned it will not accept Greek bonds as collateral from banks if it does default, which would paralyse large parts of the European banking system.
Bank stocks sold off in Europe overnight. London's FTSE 100 fell 1.5% and Europe's Stoxx index fell 2% with banks the biggest losers.
The Dow fell 0.8%.
Concerns are also mounting about whether America will raise its debt ceiling before August 2. It Republicans and Democrats can't agree on budget deficit cuts to allow a debt ceiling increase then America will default on its debt. Politicians and central bankers alike have described a US default as an "Armageddon" or "Catastrophe" for financial markets.
US President Barack Obama has begun talking about a Plan B situation for a more limited deficit reduction plan, but even then ratings agencies may downgrade America's AAA credit rating regardless of whether the ceiling is lifted.
The New Zealand dollar was solid overnight against both the US dollar and the Australian dollar. It also hit a record high vs the Pound.
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