90 seconds at 9 am: US stocks up on US factory output rise, but NZ$ weaker on fresh talk of RBNZ rate cut after lowest inflation since 99; Citigroup CEO Pandit resigns unexpectedly

Here's my summary of the key news overnight in 90 seconds at 9 am, including news US stocks are up around 0.8% in late trade after better than expected US factory output reinforced hopes that near zero interest rates and money printing might boost the world's largest economy.

Output at US mines, factories and utilities rose 0.4% in September, which was better than expectations for a rise o 0.2% and better than a surprise fall in August.

Meanwhile, European stocks rose 2.5% after talk grew that Spain was on the verge of a conditional bailout request, which may trigger the European Central Bank's 'Big Bazooka' of unlimited bond buying. Two German lawmakers said they would not object to a Spanish bailout request. See more here at Bloomberg.

Stronger German investor confidence also helped. See more here at Bloomberg.

Elsewhere, Citigroup CEO Vikram Pandit resigned unexpectedly overnight. He had clashed with the board over strategy and pressure is now expected to build for a breakup, given its share price is seen well below its value in parts. See more here at Reuters.

However, the New Zealand dollar was weaker overnight despite the rallies on global stock markets.

Normally it rises and falls in tune with appetites for risk on global markets, but this time traders focused on very weak inflation figures for the September quarter out yesterday that increased expectations the Reserve Bank will cut the Official Cash Rate by 35 basis points over the next year.

Lower interest rates make the New Zealand dollar less attractive for foreign investors. The New Zealand dollar fell to 81.4 USc from over 81.7 USc yesterday and was weak at 79.2 Australian cents.

Financial markets see a 20% chance of a rate cut next Thursday when Graeme Wheeler makes his first decision as Reserve Bank Governor.

(Updated with fresh links/background)