Amanda Morrall details the key news overnight in 90 seconds at 9 am in association with Bank of New Zealand, including news that U.S. consumer confidence has plunged to a 28-month low.
U.S. Treasuries, gold and oil rallied over night following news that consumer confidence fell the most since
the global financial crisis. See more here at Bloomberg.
Renewed concerns of a recession triggered a buying spree on U.S. Government bonds. There was also expectations the Federal Reserve would try harder to push down borrowing costs.
The Dow closed up 20 points or 0.2%. Gold rose 2.1% and oil rose 1.9%.
U.S. housing prices also slumped, however there are indications the real estate market meltdown there may be stabilising.
Closer to home, there is speculation that insurance premiums and earthquake levies could be on the rise.
That's in the wake of yesterday's announcement that the Earthquake Commission's liabilities have ballooned from NZ$4 billion to more than NZ$7 billion. (See Alex Tarrant's story for details).
Credit rating agency Standard and Poor's has upheld the EQC's AAA rating because of Government's backing, however it is said to be "working through the implications" of the revised estimates on the Crown's operating balance.
Meanawhile, Earthquake Minister Gerry Brownlee will be heading a delegation to Monaco next week in an attempt to shore up support from reinsurers.