Here's my summary of the key news overnight in 90 seconds at 9 am, including a strange set of successes and problems around the world.
As the NZ stock market reached a record high yesterday, the rest of the world is showing signs of expanding trade.
In the US, consumer credit grew at an unexpectedly strong annual rate of +9.7% in July to a record high, and its fastest growth since July 2011. American consumers look like they are back as the engine of international trade.
Germany's exports grew a surprising +8.5% in August and helped that country post a huge trade surplus.
And China’s trade surplus climbed to a record US$50 bln in August as exports rose on the back of increased shipments to America and Europe, while imports fell for a second month as a property slump hurt domestic demand.
Yesterday we noted the sharp fall in iron ore prices. Today comes news that Chinese steelmakers are really doing it tough with debt levels racing higher to "alarming levels". The other big steel user, shipbuilding, is faring little better.
The UST 10yr benchmark bond yield slipped back marginally today and is now at 2.45%.
The price of oil and gold both fell overnight. The US oil price is now just over US$92/barrel and the Brent benchmark is now just above $100/barrel. In fact, the Brent price fell below $100 for the first time in more than a year as concerns of rising oil surpluses grows. Russian leverage over Europe is diminishing. Gold is basically unchanged, now at US$1,262/oz.
We start today with our currency sharply lower against the US dollar. We are now just on 82.8 USc its lowest in seven months, but up against the Aussie at 89.2 AUc, and the TWI is at 79.0.
The British pound is taking a bit of a hit as traders position themselves for the possibility of a breakup of the United Kingdom. Interestingly, BNZ's owner NAB may have to take a big write down if Scotland does win independence in next Friday's vote.
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 »
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