Here's my summary of the key news overnight in 90 seconds at 9 am, including news of continued jobs growth in the US.
US unemployment fell, and the number of new jobs rose by 169,000 in August according to the latest US Non-Farm payroll survey released over the weekend. But the employment rise was a little lower than the 180,000 the markets expected.
And the unemployment rate fall was due more to a lower participation rate. (The American participation rate of 63.2% compares with ours of 68.0%.)
It was a disappointing jobs report and leaves Fed officials without a clear-cut signal of an economy on the mend, creating a dilemma for them as it contemplates pulling back on its bond-buying program.
In China, there were new signs of resilience in August, with key trade data pointing to a sustained strengthening in global demand for goods from the country. Exports were up 7.1% from the same month a year earlier.
In Australia, the new Abbott government starts with one hand tied firmly behind its back because it does not control its upper house, despite a resounding victory on the night.
Labor ended up doing better than expected - Rudd apparently made a difference - but the Green vote also fell sharply (except in Victoria) while other third parties surged. (The Greens polled 11% but only got 8% in the vote.) The WikiLeaks Party garnered virtually no support. The Senate now has some some outlier parties represented including the Australian Motoring Enthusiasts Party.
Billionaire Clive Palmer's pop-up party did surprisingly well, about the same level as the informal/wasted voting. Informal voting did not surge as some had expected. It was at about the same level as at the previous election.
On the US jobs news, gold jumped US$20/oz to US$1,388, and the Dow fell to 14,925 after briefly hitting 15,000 earlier. After the markets closed, the South African mine unions announced an end to their strike.
The NZ dollar is starting the week up more than a cent at 79.9 USc, 87.2 AUc, and the TWI is at 75.6.
The easiest place to stay up with today's event risk is by following our Economic Calendar here »
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2 Comments
I noticed in the news that the police in Pine Bluff , Arkansas , have shot dead an ornery 107 year old man , toting a handgun ...
.. and then I had a Gummy thought ( first of the new spring season ) , why not check out real estate listings for that town of 49 000 people ...
$US 14500 buys you a shabby do-upper with 3 bedrooms in that town .... $US 100 000 gets yer a good condition house on a 1 or even 2 acre lot ....
.. $US 14500 in Auckland doesn't even get you a toilet with some of the floorboards missing .... you need $NZ 1.2 million for that in Grey Lynn ...
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