Shares slipped in Europe and the US in overnight trading. However a lift in copper and iron ore prices on stimulus statements from China officials could provide support in trading today. Currency markets remain steady, although the Pound continues to bubble higher ahead of the UK election on Thursday.

Market inaction was as important as market moves. Crude oil edged slightly lower, but remains near three-month highs, indicating a more robust view of global growth. Bonds, gold and cryptocurrencies are steady at lower levels, pointing to receding fear.

The key market issue remains the trade negotiations between China and the US, despite its temporary disappearance from the headlines. The December 15 deadline for new US tariffs on China goods looms. Market risk is becoming binary – a deal could see further pro-growth trading, new tariffs could see sentiment collapse in a heap.

Asia Pacific futures markets reflect the overnight falls, describing a soft opening round. China inflation data is due mid-session, after Australian house prices and sentiment indicators this morning.