90 seconds at 9 am: ECB rate cut, Germans unhappy; negative rates possible; US confidence rises, benefit claims fall; Yuan strengthens; NZ$1 = US$0.850, TWI = 78.4

Here's my summary of the key news overnight in 90 seconds at 9 am, including news the ECB has cut its official rates to record low levels.

Refinancing and marginal lending rates were cut by 25bps and 50bps, respectively and the benchmark lending rate is now 0.5%. This was what markets expected. Denmark made a similar cut. The decisions weren't unanimous however with the German delegate unhappy with the decision. 

A whole host of poor PMI data released today supported the ECB's efforts to reinvigorate the contracting European economy. The announcement at last brings European rates in line with those of other major developed economies.

Even though Europe's final manufacturing PMIs were a touch better than expected, readings remain well below 50, the level that indicates contraction.

In a bit of a surprise, Mario Draghi said they may also consider negative rates if more easing is needed - where they charge banks to hold their reserves.

The news was much better in the US where consumer sentiment climbed last week to the highest level in more than five years and claims for jobless benefits unexpectedly dropped, indicating the American economic expansion is making progress.

We get important unemployment (NPF) data tonight.

The Chinese currency continued its impressive climb against the US dollar when trading resumed after their holiday, a move that signals Beijing is preparing purposefully for a more open, free floating future for its currency.

The Dow, gold and oil have made back nearly all the declines they posted yesterday, although metals like copper and aluminium continued their slide in mid-day trade.

US Treasury yields continued their fall.

The Kiwi dollar starts today unchanged from this time yesterday at 85.0 USc, 82.9 AUc, we are up against the euro of course and our TWI now stands at 78.4.