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US stocks up on lower jobless claims; Swiss impose negative rates; Aussie supermarkets reprise tough stance on suppliers; UST 10yr yields jump; oil falls; NZ$1 = 77.5 USc, TWI = 78.4

US stocks up on lower jobless claims; Swiss impose negative rates; Aussie supermarkets reprise tough stance on suppliers; UST 10yr yields jump; oil falls; NZ$1 = 77.5 USc, TWI = 78.4

Here's my summary of the key issues that affect New Zealand overnight with news of a stock market rally following yesterday's Fed statement.

The number of Americans filing new claims for unemployment benefits unexpectedly fell last week and more than -20% below the same week a year ago, suggesting their labour market continues to strengthen.

Big bond investor PIMCO has used former Federal Reserve Chairman Ben Bernanke to help write its outlook for 2015, one that sees higher American growth, a stronger US dollar and muted inflation.

Across the Atlantic. the Swiss central bank announced overnight that it will introduce negative interest rates. That just means they will charge depositors an interest rate based 'account fee' for holding funds at the central bank. Retail bank Credit Suisse said it will only apply to the accounts of big commercial companies. They say they won't apply negative interest rates to 'savings accounts'. Switzerland has been deluged in funds flowing out of Russia recently.

In Australia, Woolworths - the owner of Countdown in New Zealand - has told some suppliers it could decide to pull their products from shelves just days before Christmas if they refuse to cut prices and fund the supermarket giant's new 'Cheap Cheap' advertising campaign. Oppressive behaviour by supermarkets has not been ended by the competition authorities, it seems.

Benchmark UST 10 year bond yields have jumped significantly today in New York are now at 2.20%. That is a +12 bps rise and will no doubt be reflected in New Zealand interest rate swap markets today.

The oil price fell again overnight and is now under US$56/barrel and the price of Brent crude is now under US$61/barrel. Traders are picking the supply-glut-induced correction will continue, and there was nothing in a Putin speech overnight that changed this view.

The gold price is unchanged again at US$1,195/oz.

We start today at 77.5 USc, at 95 AUc which is a nine year high and signals lots of market chatter about 'parity', and the TWI is at 78.4.

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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