Here's my summary of the key issues that affect New Zealand overnight with news of many central banks talking or taking action.
But first, American consumer spending rose at a brisk pace in November as lower petrol prices gave their holiday shopping season a boost. A tightening labour market and lower jobless claims are starting to spur faster wage growth, which together with those lower petrol prices is helping to stimulate consumer spending.
In Russia their central bank raised interest rates overnight to 10.5% from 9.5%, the second hike in six weeks, as it seeks to control surging inflation as their economy really struggles under sanctions and the low oil price. The rate-rise action failed to halt the ruble's slide.
In China, their central bank is to pump nearly 400 bln yuan (NZ$85 billion) into their banking system in an effort to spur growth. That comes as their leadership revealed a willingness to accept a 'new normal' of slower economic growth. Lower reserve ratios are coming too, in response to yesterday's low inflation data. It seems odd to me that lower oil prices don't seem to be helping the Chinese economy.
Norway cut rates overnight, slicing 25 bps off ther benchmark rates to 1.25%.
In Australia overnight, their Reserve Bank chief said explicitly that he wants the Aussie dollar to fall to levels last seen a decade ago - about 75 USc from the current 83 USc - and says official interest rate cuts need to be delivered in a way that boosts confidence rather than remind people of their economy’s woes. But he also downplayed more rate cuts soon.
We don't often have share market news, but for those who follow the growth of peer-to-peer lending, shares in Lending Club, the world's largest peer-to-peer lender, surge more than 65% to US$24 per share in their New York Stock Exchange debut, valuing the firm at nearly US$10 bln.
Benchmark UST 10 year bond yields slipped again in New York today and are now at 2.19%.
The oil price has fallen again and is now flirting with US$60/barrel and the Brent price is just on US$64/barrel.
The gold price is unchanged at US$1,228/oz level.
Meanwhile our currency rose sharply yesterday and bedded in overnight after the RBNZ MPS. We start today at 78 USc, 94.4 AUc, and the TWI is at 78.7
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 »