US household net worth up strongly; ECB trims stimulus; China trade grows; Henry frustrated at extended inaction in Australia; UST 10yr yield at 2.39%; oil up, gold down; NZ$1 = 71.7 US¢, TWI-5 = 77.6

Here's my summary of the key events overnight that affect New Zealand, with news the ECB has cut back on its stimulus program.

But first, the net worth of American households increased in the September quarter to US$90.2 tln, a +7% annualised rise from the June quarter as equity markets and house prices both rose together. Household borrowing rose at a +4.0% annual rate, down from a +4.3% growth rate in the second quarter of 2016. Net worth at this level puts it at about 50% more than global GDP. This is why the American consumer is central to the health of the global economy.

In Europe, the ECB trimmed back its asset buying program by €20 bln per month to the new level of €60 bln per month in a surprise move overnight. However, it promised extended stimulus and dismissed any talk of tapering the program away. It doesn't see inflation rising to even +1% in any of its forecasts, and it doesn't see growth rising to +2% any time soon either. This is despite increasing money supply by about +5%,

China turned in some somewhat surprising trade data today. Exports were up almost +6%, while imports were up +13%, both numbers in yuan. So some of this was currency related. In a US dollar benchmark, exports only eked out a small rise, but it was their first raise since March. Imports were up +6.7%. Both beat analysts forecasts, especially the import data. Their trade surplus fell to US$44.6 bln in November.

On trade, maybe we shouldn't assume the TPP is dead yet. It seems the US president-elect is staffing his cabinet with supporters of the trade deal. Apparently you can say anything to get elected these days, and then do something quite different when you do. And your supporters don't seem to care.

The ex-head of the Australian Treasury is getting very frustrated with the decision making of elected politicians - or more precisely the non-decision-making. Public policy is slipping into a "fiscal mess" in Australia, he said, and there is an urgent need for bipartisan approaches to some major problems in the lucky country.

In New York, the UST 10yr yield is back up to 2.39%.

Oil prices are higher today too, now just over US$51 for the US benchmark, while the Brent benchmark is now just over US$54 a barrel.

The gold price is down today however and now at US$1,170/oz.

The New Zealand dollar is up at 71.7 US¢. On the cross rates it is at 96.3 AU¢, and against the euro up at 67.5 euro cents. The NZ TWI-5 index is up to 77.6, its highest in a month.

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 ».