Bernard Hickey details the key news overnight in 90 seconds at 9 am in association with Bank of New Zealand, including news dribbling out from continual crisis summits in Europe aimed at finding a solution to the its sovereign debt crisis.
European stocks and US stocks firmed overnight on some hope a package might emerge by the final European summit on Wednesday. See more here at Bloomberg.
European leaders have agreed on the need for 100 billion euros of recapitalisation of stressed European banks and the need for a beefed-up European Financial Stability Fund (EFSF) to stop contagion spreading from Greece to the other indebted southern European countries.
However, there has yet to be a deal found on how much of a haircut European banks will have to take on their Greek debt and exactly how the fund would be beefed up.
One idea being suggested is that the existing fund be used to insure losses on bonds and that a special purpose investment vehicle be created to buy distressed southern European debt. See more here at Reuters.
Meanwhile, US stocks also firmed after positive results from construction and mining equipment maker Caterpillar, which is seen as something of a bellwether of global economic growth. Its shares rose 5%. See more here at Bloomberg.
The HSBC/Markitt flash PMI (Purchasing Managers Index) for Chinese factories also showed the first rise in 4 months. See more here at Reuters.
That helped boost demand for commodities, which rose more than 2% overnight. See more here at Reuters.
The New Zealand dollar strengthened to 81 USc this morning on hopes for global recovery and higher commodity prices. See more here in BNZ's currencies report here on our site.
Meanwhile, local markets will be focused on September quarter inflation figures due at 10.45 am, which are expected to show the Consumer Price Index rose 0.8% in the September quarter and is up 5.0% from a year ago.
The Reserve Bank is expected to keep the Official Cash Rate on hold until early next year.
(Updated with links, details)
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