Bernard Hickey details the key news overnight in 90 seconds at 9 am in association with Bank of New Zealand, including news that European stock markets rallied 5% and US stocks rose 2.5% overnight on hopes European politicians will finally get serious about solving its sovereign debt crisis and saving the Euro.
Investors took heart from various comments from European politicians and central bankers about the prospects for increasing the size of its bailout fund, potentially cutting interest rates and recapitalising banks. See more here from Bloomberg on European politicians 'gettting it'.
Also, Greece passed its controversial property tax through the parliament despite angry street protests. See more here from Bloomberg.
Italian and Spanish government bond auctions were also successful, albeit at higher interest rates.
In America, house prices fell by 4.1% in July from a year ago, which was better than the 4.4% that economists had forecast.
A deal was also hammered out in the US Senate to avoid the US government shutting down again.
All this positivity on global stock markets drove the New Zealand dollar up almost a cent to 79 USc.
It often rises and falls in tune with US stock markets and on hopes for global economic growth, which also often drives commodity prices.(
(Updated with links, detail)
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