Here's my summary of the key news overnight in 90 seconds at 9 am, including news market forces are setting some key China signals.
The Chinese yuan surged to a record high overnight and that signals the government there is becoming more willing to let investment and trade flows determine the exchange rate. This follows the weekend announcement of the biggest trade surplus since 2009, and another announcement it is loosening its grip on interest rates.
Meanwhile, China's inflation rate eased slightly in November from October, coming in at 3.0% after being 3.2% a month earlier.
The strong American jobs report on Saturday triggered a credit quality rally when markets resumed in New York today.
We haven't seen US credit default swap spreads this low since October 2007. European and Australian CDS spreads are nowhere near as bullish.
Investment banks everywhere have their eyes glued on the US, where the long-awaited Volcker rule is due to be approved by regulators sometime tomorrow. Key details are still being thrashed out and the banking industry is mounting a last-ditch effort to weaken it.
American household net worth hit a new record high in the September quarter, according to data released by the Fed overnight.
The values of homes, stocks and other assets minus debts and other liabilities rose 2.6%, or about US$1.9 trillion, in the third quarter of 2013 to US$77.3 trillion, according to the data release.
Across the ditch, large insurer QBE has announced it will post a loss this year on the back of its US investments that have not performed. QBE is a major business insurer in New Zealand.
The NZ dollar starts today at 82.7 USc, 91.0 AUc, and the TWI is at 77.7.
The easiest place to stay up with today's event risk is by following our Economic Calendar here »
No chart with that title exists.
We welcome your comments below. If you are not already registered, please register to comment.
Remember we welcome robust, respectful and insightful debate. We don't welcome abusive or defamatory comments and will de-register those repeatedly making such comments. Our current comment policy is here.