Turnbull ousts Abbott; China seizes funds; China markets fall; EU factory output jumps; US eyes retail report; US 10yr yield 2.18%; NZ$1 = 63.3 US¢, TWI-5 = 67.5

Here's my summary of the key events overnight that affect New Zealand, with news that the revolving door of the Prime Minister's office in Canberra keeps swinging.

None of the last three have gone full term, all having lost the role from an internal party revolt.

What this means for New Zealand is unclear. The new Prime Minister will set the tone when he issues his updated assessment of their economic performance and his plan to improve things. There is a chance an honest, critical assessment may unnerve consumers and undermine recent improvements, especially on the jobs front. Malcolm Turnbull is known for straight talking. If his new economic plan is not well received he may start on the back foot as well. Politics in Australia is a blood sport. Continuing unstable government in Australia will not be helpful for New Zealand.

In China, Reuters is reporting that authorities there have seized up to 1 tln yuan (NZ$250 bln) from local governments who failed to use their budget allocations, as the country looks to spend its way out of its economic slowdown.

Yesterday's downbeat data saw both the Shanghai and Shenzhen stock markets fall sharply. The Shanghai markets were down more than -4% at one stage before official buying. The tech indexes on the Shenzhen markets were down over -6%.

Going the other way, and while not overly strong, Eurozone industrial production rose faster in July than June and was more than double than what analysts were expecting, coming in +1.9% higher than the same month a year ago.

There was little data to move American markets today and they are down as well, off -0.5% in late trading. Uncertainty over the Fed decision is casting a pall over US markets and it will likely stay that way until Friday. Only a good retail sales number early tomorrow morning may be able to change the mood. Or not.

In New York, the UST 10yr yield benchmark is marginally lower, now at 2.18%.

The US benchmark oil price is also lower, now at US$44/barrel and the Brent benchmark is at US$46/barrel.

The gold price is up slightly, now to US$1,108/oz.

The New Zealand dollar starts today pretty much unchanged since this time yesterday, now at 63.3 US¢, at 88.7 AU¢, and 56 euro cents. The TWI-5 is holding at 67.5.

If you want to catch up with all the local changes yesterday, we have an update here.

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