IMF cuts global growth forecast; US jobs openings at 13 yr high; AU construction booming; borrow your down payment in China; grim German data; NZ$1 = US$0.783, TWI = 76.2

Here's my summary of the key news overnight in 90 seconds at 9 am, including news global growth forecasts have been scaled back - again.

Following on from yesterday's downward revisions by the World Bank, overnight the [euro-centric] IMF cut its forecast for world growth, warning that stagnation in Europe, a slowdown in large emerging markets and heightened political tensions in Russia and the Middle East threatened an increasingly fragile global economy.

The US is noted as an exception with their growth forecast revised sharply higher, and also New Zealand gets a mention by being in the group of "Other Advanced Economies" who together have growth forecasts even above the US. New Zealand is also mentioned in the group of countries where housing markets have 'rebounded'.

The separation of the US was emphasised in new data about their labour markets. Job openings climbed to a 13-year high in August as employers gained confidence about the outlook for demand.

In Australia, the RBA kept its rates on hold late yesterday, and despite trade and commodity price woes, their construction industry is actually booming, led by new residential construction. Construction growth across the ditch is actually at a nine year high.

Here's an item to get you wide awake this morning. In China, a major insurance company there - Ping An Insurance who is one of China’s biggest financial firms - is offering to lend money to home buyers for down payments, part of a trend that could help their housing market  - but the move will substantially raise the risks of the Chinese financial system.

In Europe, a second day of grim German data and the cut in IMF growth forecasts spooked European assets overnight, as the recent spell of global financial market volatility continued.

That pall also enveloped Wall Street with stocks lower in late trade and a sharp fall in Treasury yields. In New York, UST 10 yr yields have fallen to 2.39%.

And the oil price is now under US$90/barrel with the Brent price just above US$92/barrel. Gold is basically unchanged today at US$1,208/oz.

We start today with our currency level a little higher against the US dollar than it was at this time yesterday. The NZD is at 78.3 USc, is at 88.9AUc, and the TWI is at 76.2. 

If you want to catch up with all the changes on Tuesday we have an update here.

The easiest place to stay up with today's event risk is by following our Economic Calendar here »