Here's my summary of the key news overnight in 90 seconds at 9 am, including news 'Frankenstorm' Sandy appears to have caused US$20 billion of damage across the eastern coast of the United States.
Bloomberg reports Eqecat estimates the damage could rise to US$20 billion, which would be about half the cost of Hurricane Katrina. Economists estimate the storm could reduce US GDP by around 0.1-0.2%, given the world's largest economy generates around US$13.6 billion of output each year.
Meanwhile, the US stock and bond markets were closed for a second day overnight, making it the longest shutdown of the US financial markets for weather reasons since 1888. Trading was closed for four days after the September 11 attacks and markets were closed for longer in March 1933 when then President Franklin Delano Roosevelt declared a bank holiday.
Bloomberg reports the New York Stock Exchange is expected to open for normal trading tomorrow.
Elsewhere, the Bank of Japan announced an 11 trillion yen increase in its asset buying or quantitative easing programme to 60 trillion yen. However, the yen rose after the announcement and Japanese stocks fell because the fresh stimulus, the second in two months, was less than expected.
The Bank of Japan also announced a "Stimulating Bank Lending Facility" to encourage bank lending to businesses, similar to the one announced by the Bank of England last month.
Japan's economy was estimated to have contracted 5.1% in the third quarter from the second quarter as the global economy slowed and car sales in China crashed after public protests in China over a territorial dispute.
Meanwhile, the New Zealand dollar was solid around 81.9 USc and was also slightly firmer against the yen. See more here from BNZ's Mike Jones on our site.
New Zealand wholesale interest rates fell yesterday and financial markets estimate a 75% chance of a 25 basis point cut in the Official Cash Rate by the middle of next year. Economists, however, expect the OCR to be held at its current record low 2.5% until late 2013 by the new more hawkish Governor Graeme Wheeler. See more here from BNZ's Kymberley Martin on our site.
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