90 seconds at 9 am: Dow hits record; oil price spikes; US jobless claims fall, factories improve; China house prices rise; NZ$1 = US$0.790, TWI = 75.0

Here's my summary of the key news overnight in 90 seconds at 9 am, including news of good American economic data driving markets.

The Dow hit a new record high of 15,587 at 2am this morning. It's falling back in late trade, but it may still close at a record level. The S&P500 also hit a new intra-day record.

US oil prices spiked higher overnight, and given some major infrastructure changes in the US they are now almost equivalent to international prices.

They were up US$2 overnight to US$108/barrel, still well below the US$147 in July 2008 and US$115 in April 2011, but the move up will push our pump prices higher. Those pump prices are at record levels basically because of new taxes we have imposed on ourselves.

Driving these benchmarks higher were a much better-than-expected fall in US jobless claims, and continuing better-than-expected US regional manufacturing surveys.

Yields on benchmark US Treasuries rose, prices fell. In fact the US sold 10-year Treasury Inflation Protected Securities (TIPS) at a positive yield for the first time since November 2011 with investors no longer willing to pay a premium to guard against the threat of rising consumer prices.

In contrast, yields fell on 10 year Aussie government stock, as they did on NZ government stock too.

There were more stunning rises in US TBTF bank earnings. This time Morgan Stanley reported profits that rose by 66% compared with those of a year ago. But they also said they no longer meet the proposed new minimum leverage standards.

In China, June new home prices rose in all but one city, and this reinforced the challenges Premier Li has in trying to rein in speculative investment, even as their economy slows.

The NZ dollar starts today at 79.0 USc, 86.2 AUc which is its highest level since November 2008, and the TWI is at 75.0.