Here's my quick summary of the key overnight news you need to start your day.
The apparent resolution of the US fiscal cliff has markets taking a strong "risk on" view. The Dow is up 1.7% to 13,320 and the US dollar is falling sharply against the euro.
This is resulting in a sharp rise in the NZ dollar. It is now buying US$0.83 and it is 74.5 on the TWI. These levels are 1c higher than they were on New Years eve. The AU$ has strengthened against international currencies as well.
However analysts said the market euphoria is likely to be short-lived as the US Congress has just kicked their debt can a short distance.
A new bigger battle looms on their debt ceiling by the end of January. By the end of February, US budget spending deals expire. We will be getting major policy turbulence from the US in Q1.
In China, there are two items to note: firtsly, the flash HSBC PMI data for December came in more positive than many were expecting. The Index rose to a final reading of 51.5 in December from 50.5 in November.
The rise to a 19-month high, adds to recent signs of a rebound in China and is likely to further boost confidence in its economic outlook.
And still in China, Beijing land prices are rising in a frenzy, worrying even the developers in the market. A recovery in the Chinese land market began towards the end of last year and will be cheered on by local governments who rely on land sales as an important source of fiscal revenue.
But the price surge has triggered criticism that officials could be laying the groundwork for a property bubble by restricting the supply of land.
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