Here's my summary of the key overnight news in 90 seconds at 9 am, including news of post-debt-limit cleanup.
With a deal done, even a temporary one, eyes are now on the impact of the shutdown in the US and the consumer reaction.
Early signs are that American consumers are likely to breathe easier during the holiday shopping season, boosting retail sales. There is also an expectation that the crisis will delay the Fed's tapering plans until the effects settle.
Along with a fall in US jobless claims last week, and a rise in a big regional factory index, US equity markets have exploded out of the gate positively, with the S&P500 likely to end todays session in record territory.
The oil price has fallen sharply overnight, with the benchmark US price down to US$100/barrel at one point, although it has recovered slightly since then. The Brent benchmark is at US$110/barrel. These price levels are similar to what they have been for the past three years.
Positive these things may be, but outside the US, people are reassessing what went on, and worried these short-term responses are habitual.
Gold has snapped back up, to well above US$1,300/oz. And the US dollar exchange rate is tumbling, pushing our currency up over 85 USc, moving with the European currencies and the Yuan.
The Chinese official media is making a big deal about a reassessment of how it holds it foreign reserves. They may be trapped now because US Treasuries are the only instrument with enough capacity to hold their wealth, but they are actively looking for an alternative. They have few choices to hold US$3 trillion.
US Treasury 10 yr bond yields have fallen back to 2.60%.
We are only in October, but the Australian fire season is well underway, with events that are 'as bad as it gets'. This coming summer will be a real test of Australia's ability to cope with extreme heat, and that response will likely have a lasting impact on New Zealand.
The NZ dollar starts today higher yet again at 85.1 USc, 88.3 AUc, and the TWI is at 78.3.
The easiest place to stay up with today's event risk is by following our Economic Calendar here »
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