Bernard Hickey details the key news overnight in 90 seconds at 9 am in association with Bank of New Zealand, including news US and European stocks rallied 2.7% after good economic and financial news from the world's two largest economic zones.
This surge in appetites for riskier assets globally drove the New Zealand dollar up to 76.8 USc this morning.
US housing starts rose 9.3% in November to their highest level since April 2010, which was more than expected and suggested the US economy is not sliding back into recession. See more here at Bloomberg.
Meanwhile, an auction of 3 month and 6 month Treasury bills by the Spanish government was more successful than expected overnight. Spain sold €5.64 billion of the bills at an average rate of 1.735%, which was well down on the 5.11% set on November 22.
The relatively strong demand and lower interest rate was a rare positive sign from Europe's debt markets and suggests moves due tonight by the European Central Bank to make unlimited 3 year loans to European banks may be improving sentiment. See more here at Reuters.
Also Germany business confidence figures out overnight showed a surprise improvement.
Closer to home, Fonterra's GlobalDairyTrade auction platform announced prices in its overnight auction of dairy powder fell 1.6%. However, they have held up remarkably well in recent months despite the turmoil and are down just 22% from their March peak. See more here on our site.
Elsewhere, Sweden cut its official interest rate by 0.25% to 1.75% on concerns about how the Eurozone crisis will affect its economy. Sweden is part of the European Union but, like Britain, it has not adopted the euro. See more here at BBC.
Also overnight in the United States, the Republican-dominated House of Representatives blocked a plan to extend a payroll tax cut for another two months, meaning US workers may see after tax pay cuts across the board after Christmas. See more here at Bloomberg.
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