Abe wins big in Japan; Spain convulsing; EU confidence improves; China house prices jump; Argentina backs reform; big profits flow from Aussie regulation; UST 10yr yield at 2.38%; oil and gold up; NZ$1 = 69.6 US¢, TWI-5 = 72.5

Here's my summary of the key events over the long weekend that affect New Zealand with news from around the world.

Firstly, Japan's yen hit three-month lows against the US dollar (just as ours is falling too on a Government change) as a big election win for Shinzo Abe gave a green light for his super-easy monetary policy. And he indicated he will change their constitution "to clarify the legal status of Japan's Self-Defence Forces" in the face of the threat from North Korea.

Meanwhile, the euro also sank as Spain's constitutional crisis aggravated concerns about political unity in the bloc.

And there is an odd piece of EU data out today. Eurozone consumer confidence strengthened for a third straight month in October to its highest level since 2001, according to an official EU survey. The result was also better than markets expected. The odd thing is that actually, this data is negative - there are more pessimists than optimists in the EU. This survey hasn't been positive since January 2001.

In China, new data out overnight showed that China’s new home prices rose in September at the fastest rate on record as buyers rushed to close contracts before new restrictive measures took effect in October. Prices in China’s 70 major cities rose +11.2% in September from a year earlier, accelerating from a +9.2% annual increase in August, as 64 of them saw year-on-year price gains.

And in Argentina, President Macri has won a sweeping nationwide victory in midterm congressional elections over the weekend and is moving swiftly to overhaul Argentina's economy with tax cuts and austerity measures, rolling back years of profligacy with policies that repeatedly took them near to, and into, bankruptcy.

And an interesting situation is developing in Australia. Their regulators forced banks to clamp down on interest-only lending, rationing it by reducing access and raising interest rates by applying the regulator's higher risk assessments. But now those same banks are under fire for 'profiteering' from responding to those instructions. It is almost as though the regulators had no idea the consequences of what they required. They need to be careful what they wish for; their moves gave a free-pass for them act in unison, without any competitive consequences.

And staying in Australia, network operator Vocus as announced it is hiving off its New Zealand business, having built it by buying Slingshot, Orcon and Flip. They are to be spun out and sold by Goldman Sachs.

In New York, the UST 10yr yield is now at 2.38%, sharply higher than on Friday.

The price of crude oil is marginally higher today and now just under US$52 / barrel, while the Brent benchmark is just under US$57.50.

The price of gold is also marginally higher and now at US$1,279 oz. New data shows that gold output is expected to rise in Australia over the next five years.

But the Kiwi dollar is down sharply from where we left it last week, at 69.6 US¢. But on the cross rates we are unchanged at 89.2 AU¢, and at 59.3 euro cents. Our TWI-5 index is now at 72.5.

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

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