Here's my summary of the key news overnight in 90 seconds at 9 am, including news equity markets have been buffeted overnight.
There is trouble in the euro-zone again, and specifically with a major Portuguese bank, the Italian banking system, and Greece's sovereign debt. The Portuguese banking worries center on Espírito Santo International, which yesterday missed payments on some of its debt. The firm is the parent of Portugal’s second-largest lender.
There are also concerns in Italy, and in Greece a sovereign debt issue failed, throwing up doubts about their recovery transition. The word 'contagion' resurfaced overnight.
In Britain, the Bank of England held its 0.5% official rate in their overnight review, but has not started any effort to pull back on its QE program.
And in case you missed it in our 4pm update late yesterday, Australia’s jobless rate returned to match the highest in a decade as employers there cut full-time payrolls and more people sought work in June, underscoring the likelihood the RBA will keep their interest rates at a record low.
It's not all bad news however. Chinese exports grew in June on strengthening American consumer demand, in what is being seen as a positive sign for China's factory sector and for the global economic outlook.
And, the number of Americans filing new claims for jobless benefits fell last week to one of its lowest levels since before the 2007-09 recession and was much better than expected, and a sign of increasing health in the US labour market. There are now 2.5 mln people claiming unemployment benefits in the country, compared with 4.5 mln in the comparable week a year ago.
And close to home, overnight Fonterra announced a strategic partnership with drug firm Abbott Labs. They are to jointly develop another dairy farm hub in China. The agreement still needs Chinese regulatory approval however. The trusted dairy brand based on NZ farms is taking the company a long way.
Yields on benchmark UST 10 yr bonds fell today on the euro-zone concerns and are now at 2.52%. The oil price rose on the US labour market news but is still below US$103/barrel. The Brent price rose much less and is only marginally over $108/barrel. The gold price jumped on the euro news, and is now at US$1,338/oz.
And we start today with the NZ dollar in record territory again after making predictable gains against the Aussie and the Euro. We are at 88.2 USc, at 93.9 AUc. The TWI is now a tad under 82 extending the run of daily all-time highs.
If you want to catch up with all the changes yesterday we have an update here.
The easiest place to stay up with today's event risk is by following our Economic Calendar here »