US house sales rise; EU retaliates against the US; EU confidence low but rising; SA jobless hits 27%; S&P puts Australia on notice; UST 10yr yield at 2.31%; oil up, gold down; NZ$1 = 70.5 US¢, TWI-5 = 76.2

Here's my summary of the key events overnight that affect New Zealand, with news of a mix of confidence signals around the world. New Zealand looks great by most comparisons.

Firstly, American home resales volume rose in October to it's highest level in almost ten years. Their median price for all housing types in October was NZ$329,400, up +6% from a year ago and is the 56th consecutive month of year-over-year gains. The median price for a single-family home rose +5.9% to NZ$331,500. Sales on the US West Coast showed the highest gains of any region.

In a taste of fragmentation to come, the EU has today signaled it will require international banks to hold sufficient capital in the currency zone to meet local capital requirements. This is part of a retaliation for a similar rule adopted by the US authorities and shifts banking regulation into a more regional, protectionist state. Both sets of requirements will likely hurt UK-based institutions the most.

Portugal has repaid the IMF €2 bln early for amounts due in 2019. This is part of the €78 bln bailout that the country got in 2011.

And in an indication of just how far the EU has to go to restore consumer confidence, there is a survey out today trumpeting that fact that European consumer confidence is now at a 2016 high. The latest index reading is a negative -6.1, but almost two points improved from October. The EU has never had positive consumer confidence since this survey was started in 2005.

In Sweden, an assessment there shows that when interest rates are low or even negative, people save more at a bank. The motivation changes from trying to earn a return, to having the security of ready funds. It is a consequence of low confidence.

In South Africa, data out overnight indicates that unemployment there has reached a 13 year high - of an eye-watering 27%.

In Australia at a conference in Canberra yesterday, a senior S&P manager essentially warned that Australia's AAA credit rating is at risk of a downgrade if there are more delays in getting their Federal budget balanced. Given the political impasse, it seems unlikely we are about to hear of any improvements any time soon, and certainly not in their upcoming half year fiscal update. A cut in the Aussie rating will probably have some sort of backwash effect on us, although New Zealand sovereign CDS spreads are uniquely low at present, and 10% lower than for Australia.

In New York, the UST 10yr yield is lower again today, now at 2.31%.

The US benchmark oil price is marginally higher and now just under US$48.50 a barrel, while the Brent benchmark is now just under US$49.50 a barrel.

The gold price is down to US$1,208/oz and at a nine month low

The New Zealand dollar will start today just a little lower at 70.5 US¢. On the cross rates it is a bit lower too at 95.4 AU¢, and against the euro at 66.4 euro cents. The NZ TWI-5 index is now at 76.2.

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 ».