Bernard Hickey details the key news overnight in 90 seconds at 9 am in association with Bank of New Zealand, including news that European stocks jumped 4% overnight after European ministers talked about recapitalising banks, easing some fears for now about the stability of the European banking system.
European Finance Ministers meeting in Luxembourg on Tuesday agreed to examine a way to strengthen bank balance sheets to prevent contagion from Greece's sovereign debt crisis spilling over into the banking system. See more here at Reuters.
This followed the pledge of support on Tuesday evening by Belgium's government for Dexia Bank, which saw its share price slump more than a third. See more here at Reuters.
The jump in European stock markets came despite a three notch downgrade of Italy's sovereign credit rating by Moody's. See more here at Reuters.
US stocks were also stronger in late trade on the European banking hopes and on some mildly better than expected economic data showing the economy growing, albeit slowly, rather than slipping into recession. See more here at Reuters.
Oil prices also rose on some renewed hope for the global economy.
Brent crude rose more than US$2/bbl to US$101 bbl. An unexpected decline in inventories also fueled the first gain in four days.
The New Zealand dollar also rose with all the talk of higher commodity prices and some lifting of the gloom in Europe. It often rises and falls quite sharply in line with these perceptions about the global economy and commodity prices.
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