Bernard Hickey details the key news overnight in 90 seconds at 9 am in association with Bank of New Zealand, including news the gold price fell more than US$100/oz or 4% overnight as some investors wondered whether it had risen so fast it was in bubble territory.
The gold price fell in late New York trade to US$1,757/oz, its biggest fall since March 2008, which was before the Lehman Brothers crisis of September 2008. Earlier this week it rose to well over US$1,900/oz and seemed destined for more than US$2,000/oz.
Some are also worried that US Federal Reserve Ben Bernanke may not unveil a fresh round of money printing on Friday as forecast earlier in the week. More money printing devalues the US dollar and makes gold more attractive. See more here at Reuters.
The Dow and the S&P 500 indices for US stocks closed up 1.3% after better than expected US economic data. See more here at Bloomberg.
US durable goods orders rose 4% in July because of a surge in demand for cars and aircraft. This was more than expected. See more here at Bloomberg.
Also, US house prices fell 'only' 5.9% in the June quarter from a year earlier, but prices in June rose 0.9% from May, which was more than expected. See more here at Bloomberg.
In Asia, Moody's cut Japan's sovereign credit rating because its economy continues to be mired in recession and public debts continue to rise to very high levels while politicians dither. See more here at Reuters.
The Nikkei also fell despite the announcement of a US$100 billion fund to try to control the rise in the yen, which is hitting many Japanese exporters. See more here at Bloomberg.
In Europe, markets are again worried about the latest bailout plan for Greece. The 2 year bond yield in Greece rose to a record high 44% as it emerged Finland had done a side deal with Greece to agree to its bailout and may reject the bailout plan.
Also, there are renewed fears about the political heat German Chancellore Angela Merkel is taking over the bailout plan. See more here at Reuters.
Markets are now almost completely focused on the speech due from Bernake at 10 am eastern time on Friday (2 am NZ time on Saturday) in Jackson Hole in Wyoming. QE III. Will he or won't he?
The New Zealand dollar was solid at around 82.8 USc in morning trade.
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