US data shows healthy gains; Bullard says QE may continue; China lending rises; Wall Street higher; UST 10yr 2.13%; gold down, oil up; NZ$1 = US$0.796, TWI = 77

Here's my summary of the key news overnight in 90 seconds at 9 am, including news it is not all gloom on the global front. (In fact, NZ has won a seat on the UN Security Council.)

While most of the media attention is on the very real threats from Ebola, financial markets are suggesting their big sell-off yesterday may have been an over-reaction. The latest American data has caused the re-think.

The number of Americans filing new claims for jobless benefits fell to a 14-year low last week and industrial output rose sharply in September. That was the biggest output gain for US factories in nearly two years. These are positive signals that could help ease fears over the world economic outlook, especially the European gloom where inflation is all but extinguished.

And foreclosure activity across the United States declined last month to the lowest level since July 2006, as banks reclaimed fewer homes, according to a report released overnight.

In addition, one Fed governor has suggested that the Fed may not be about to end its bond buying program just yet.

In China, banks there stepped up lending to unexpectedly higher levels in September, perhaps a sign that the government wants to boost credit to re-energise an economy that shows some signs of losing steam.

Australian data out yesterday showed that consumers there remain pessimistic and making an eight month trend of pessimists outnumbering optimists.

Wall Street now seems to be in something of a relief rally. Stocks are higher in late trade.

And the UST 10yr yields have reversed their falls today and are now higher at 2.13%. In New Zealand this morning however our swap rates open sharply lower again reflecting yesterday's trouncing.

The oil price is also recovering and is now up to almost US$83/barrel with the Brent price now just over US$84/barrel. It is not much of a recovery to be fair, but these key prices have stopped falling today.

Gold on the other hand has fallen and is now down to US$1,237/oz.

We start today with our currency level pretty much unchanged. The NZD is up slightly 79.6 USc, at 90.8 AUc, and the TWI is now just a tad over 77. 

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 »