US data strong for housing, factories and employment; eurozone and China factory data weak; China to cap coal use; UST 10yr 2.31%; NZ$1 = 78.5 USc, TWI = 78.2

US data strong for housing, factories and employment; eurozone and China factory data weak; China to cap coal use; UST 10yr 2.31%; NZ$1 = 78.5 USc, TWI = 78.2

Here's my summary of the key news overnight with news US stocks are rising this morning as strong American data offset concerns over a slowdown in the euro zone and a loss of momentum in Chinese factories.

The index of US leading indicators increased more than forecast in October, on gains in manufacturing and easier credit, the respected Conference Board survey said.

Even though the main October CPI index in the US was unchanged, underlying inflation pressures rose in October, even as petrol prices fell. This is building expectations of a mid-2015 interest rate hike from the Federal Reserve.

American home resales jumped to their highest level in more than a year in October and exceeded the sales level of a year ago for the first time this year.

The number of Americans filing new claims for unemployment benefits fell less than expected last week, but still continued its downward trend and pointed to strengthening American labour market conditions.

However, across the Atlantic things are now so bright. The flash November PMI was its weakest in the eurozone growth in 16 months.

The flash PMI for November for China was even weaker showing growth in that sector has stagnated and output actually contracting for the first time in six months.

In Beijing, the State Council, China’s cabinet, released details of an energy strategy that includes capping coal consumption at 4.2 bln tons, and having the energy source limited to 62% of their overall needs.

In New York, UST 10yr bond yields fell in mid-afternoon trade to 2.31%.

The oil price held steady today. It is now just above US$75/barrel but the Brent price is now below US$79/barrel.

The gold price is also steady at US$1,192/oz.

The NZ dollar is slightly stronger against all comers this morning. We are starting at 78.5 USc, 91.2 AUc, and the TWI is at 78.2

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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