Bernard Hickey details the key news overnight in 90 seconds at 9 am in association with Bank of New Zealand, including news investors are having second thoughts about the deal hammered out over the weekend to rescue the Eurozone.
Moody's and Fitch warned they were reviewing European sovereign credit ratings and commented that the 'fiscal compact' deal was not enough to solve the Euro crisis. See more here at Reuters.
US stocks were down 2% in late trade, while European stocks fell 3%. As is often the case when investors shift out of riskier assets and currencies, the New Zealand dollar fell to 76.2 USc this morning from well over 77 USc yesterday.
The Italian 10 year bond yield rose more than 40 basis points to 6.98%, which is seen just below the 7% threshold beyond which Italy's debt is seen as unsustainable. See more here at Bloomberg.
The European banking system remains under severe stress, particularly in France, Italy and Spain, where banks are exposed to each other and sovereign debt in Southern Europe.
Europe's economy is sliding quickly back towards recession and Chinese export growth to Europe slid sharply last month.
The Bundesbank also commented overnight that it remained opposed to European Central Bank money printing to buy bonds. See more here at Bloomberg.
The gold price fell more than US$50/oz to under US$1,700 an ounce. Fears about a global downturn and a lack of fresh money printing depress expectations about inflation. The gold price often rises and falls in step with inflation expectations, given it is often seen as protection against inflation.
More than half of New Zealand's merchandise exports are to the Asia Pacific region, including Australia and China, while just 7% of our exports go to the Eurozone area.
Meanwhile, chipmaker Intel cut its revenues forecasts overnight, citing a drop in orders from computer makers because of a shortage of hard drives normally made in flood affected Thailand.
Closer to home, shares in Trade Me are expected to start trading this morning. The shares were priced at the top of their float range of NZ$2.30-NZ$2.70, which is around 15.6 times forecast earnings per share and seen as expensive by some. See our November 9 article here.
However, demand for the shares was strong. Milford Asset Management's Brian Gaynor said fund managers were scaled back. See our interview with Brian Gaynor here.
NZX said Trade Me share trading starts at midday
No chart with that title exists.