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)
No chart with that title exists.
18 Comments
"and on hopes for global economic growth",
Well put. A lot of lemmings rushing along behind the lemming ahead. Why is there so much reporting of them? It's as if 'the markets' are somehow in the know.
More accurately, they're 'in the know-not'.
"Hope dies last" - (film), The Lives of Others
yep, lemmings......driven by greed....they are so afraid that they wont make a few $s that they are prepared to risk a substantial part of their fortunes in wild gambles......
This is all short term "today".....no fundimentals.....or logic....IMHO.
So is our Govn, so when the market signals finally arrive on Peak oil, at least a decade too late we will be in deep doo doo.....and the Pollies will wriggle out of it....
Unless of course you accept that the price spike in 2008 was the first of the signals.....
regards
The situation in Europe has now officially become a farce.
While the Equity markets rocketed up between 4-5% last night because of a rumour that Greece, and therefore Europe, would be saved by a new plan to leverage up the EFSF, a large number of people who would actually have to approve the deal were denying such a deal even existed.
German Finance Minister Wolfgang Schaeuble told the cabinet on Tuesday:
.. there were no plans to increase the volume of the European Financial Stability Facility (EFSF) rescue fund or Germany’s maximum contribution
more here
http://www.macrobusiness.com.au/2011/09/deal…-what-deal/
Pheraps they are all waiting for a good rumour.Why would Germany want to bail out Greece?
BH, no mention of that BBC interview....................
I think its being flogged to death.....seems to be almost viral on facebook...
regards
I LMAO!!!
Bob Jones on the folly of the current re-build proposals for Chch CBD;
http://www.stuff.co.nz/business/rebuilding-christchurch/5696381/CBD-can-t-be-rebuilt-Bob-Jones
The one thing I miss about Bob Jones no longer being in politics..... doesn't pull the punches...doesn't waste time with flowers and candy.
I'd love to see a regular column by Bob Jones in here. Especially if it replaced Olly's incoherent dribblings.
yeah and Keith Locke to give us the extreme left/Nicky Hagar view of the world - very entertaining
Don't think Locke would survive in a room with Bobby I'll belt you, ya pansy Jones....
Ask Rod Vaughn ya don't try sneaking up on him with your candyass attiude tucked in your P.C. holder without getting a direct answer.
http://www.nzonscreen.com/title/eyewitness-news---bob-jones-punches-reporter-rod-vaughan-1985
He has little time for waffles n cream,
Another folly?
NZDMO plans to tender NZD 1.0 billion notes tomorrow.
I guess the DMO hopes to garner support from the 'doubling down' mentality of losing traders post the NZD/USD pair currency fall.
Nonetheless, whether imposed or not DMO has, in recent weeks, managed to avoid the catastrophic losses associated with issuing long tenor paper since 'twist' was announced by the US Federal Reserve.
Bizarre - but then what isn't these days?
:-)
nvestors 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.
Hooray all is well again until the next rumour/news. Investors are such fun to watch. So excitable.
lucky there weren't Merchants from Venice then Billy.....or took heart might get a whole new meaning.
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