AM Finance Update - what you need to know

WORLD FINANCE UPDATE:

A weaker greenback has pushed the Australian dollar higher amid growing concerns about the looming US debt ceiling deadline.

At 0630 AEDT on Tuesday, the local unit was trading at 94.34 US cents, up from 94.26 cents on Monday.

And the Australian market looks set to open lower following falls on Wall Street overnight as the US budget stalemate entered its second week with the government partially shut down.

At 0645 AEDT on Tuesday, the December share price index futures contract was down 13 points at 5,144.

ELSEWHERE:

WASHINGTON - The "terrible" and "unthinkable" threat of a US government default has transfixed Washington, as a standoff over raising the debt ceiling surmounted angst over a week-long government shutdown.

BEIJING - A senior Chinese official has voiced concern over a looming deadline for raising the US debt ceiling, saying the "clock is ticking" to avoid a default that could seriously harm China's economic interests.

NUSA DUA, Indonesia - China's economy is on a smooth and controlled slowdown, President Xi Jinping says, emphasising there was no reason to fear a hard landing.

ATHENS - Greece expects its economy to grow next year - at last.

MUMBAI - India's central bank has announced a further cut in the rate at which it lends emergency funds to banks, a move seen as intended to improve liquidity and strengthen the struggling economy.

WASHINGTON - The US Supreme Court has refused to consider the landmark debt case in which Argentina sought to overturn a court ruling to repay around $US1.5 billion ($A1.5 billion) to two hedge funds.

MADRID - Spain's largest bank, Santander, says it has agreed to buy a controlling stake in the consumer finance business of heavily indebted Spanish department store El Corte Ingles.

WASHINGTON - The US on Tuesday launches a new $US100 bill that comes with, for the iconic greenback, a new touch of colour, as well as special features to foil counterfeiters.