US Fed lists rates first time in almost 10yrs; US housing surges; Eurozone economy improves; China expects +6.8% growth; oil prices still falling; UST 10yr yield 2.30%; NZ$1 = 67.7 US¢, TWI-5 = 73

Here's my summary of the key events overnight that affect New Zealand, with news we have liftoff.

Today the US Federal Reserve started raising its official interest rate. The new rate is 0.50%, up +0.25%.

Janet Yellen's press conference will be dissected for its tone and future guidance. But the Statement says that future rate increases will be gradual and slow.

Of course, that leaves the enormous cash injection that is QE in place. Once it starts raising rates, the Fed must then make more decisions on how to drain markets awash in that cash which is propping up asset bubbles, and, further down the road, how to shrink its swollen balance sheet. But today is the first step; all about raising the cost of money on a path back to 'normal'.

But the equity markets are clearly not worried; this morning they are all trading higher.

In other news, American new-housing starts rebounded in November from a seven-month low and building permits surged to a five-month high. American news wasn't so positive on the factory side however; industrial production declined in a Fed survey, and is still expanding in another key survey although growth is slowing noticeably.

Across the Atlantic, the factory picture is much more rosy. The Eurozone economy saw a solid end to 2015, with robust growth leading employers to take on extra staff at the fastest rate in over four-and-a-half years.

China's annual economic growth is likely to slow to +6.8% in 2016 from an expected +6.9% this year, the People's Bank of China said in a working paper published overnight.

In New York, the UST 10yr yield benchmark rose following the Fed announcement is now at 2.30%. Swap rates in New Zealand rose in response to yesterday's strong rise and are now at five month highs.

The US benchmark oil price fell yet again today, now just under US$36/barrel, while the Brent benchmark is just over US$37/barrel. Remember, at the beginning of October, US oil prices were touching US$50/bbl.

But the gold price has jumped today, up US$13 to US$1,076/oz.

The New Zealand dollar is still holding its higher levels, now at 67.7 US¢, at 94 AU¢ and at 61.9 euro cents. The TWI-5 is now at 73. The last time the TWI-5 was at 73 was in June.

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

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