90 seconds at 9 am: PMI surveys strong in EU, US and China; Dow at record high; Gold down, oil up; new AU bank deposit tax; NZ$1 = US$0.789 TWI = 75.0

Here's my summary of the key news overnight in 90 seconds at 9 am, including a rush of surprisingly good news.

Markets were given every reason to rally today after economic data blew away expectations, the good earnings season continued and central banks maintained their dovish stance.

Firstly, manufacturing surveys for most of Europe indicated that the region’s economy is on the mend. The ones from Germany, France, Italy, the UK and even Greece all came in better than expected; only Spain disappointed.

Then the central banks - the ECB and the BofE - both stuck to their 'low rate' songsheet.

And then it was the US's turn. Their PMI surveys both came in much stronger than expected on surges on orders and production. Early reports of their jobless claims suggested these are falling. Markets are awaiting the important non-farm payroll data tomorrow, and a good result is anticipated.

And these of course followed the official China factory surveys which were better than many thought they would be.

All this optimism, based as it is in healthy factories, has seen equity markets surge higher.

Both the Dow and the S&P500 are in record territory. Gold is down, and oil is up sharply, up to almost US$108 per barrel. Oil may be up, but natural gas stocks are up sharply too, and that is encouraging a quick shift away from oil dependence in large northern economies. Natural gas prices are low. (Shell and Exxon both reported poor results.)

US Treasury yields rose, prices fell, on the basis that the better factory data may see the Fed's taper policy earlier.

Closer to home, Australian factory data was out late yesterday too, but unlike the rest of the world it was terrible.

Also, there are strong indications the Australian government is about to raise taxes, and that includes a new tax on bank deposits. Actually, it looks like a levy on banks to 'fund' the retail deposit guarantee they have in Australia. It has knocked bank share values hard overnight.

The strong northern data out overnight pushed the US dollar and euro higher, and the we fell back as a consequence.

The NZ dollar opens today at 78.9 USc, the Aussie dollar is at 88.2 AUc, and the TWI is at 75.0.