Markets are shifting back to growth exposures as the global trade dispute moves back into familiar territory. The removal of tariff threats against Mexico brings the focus back to China. Although China remains firm and the US provocative, markets are looking forward to this month’s G-20 meeting in Japan as an opportunity to bring Presidents Xi and Trump closer to resolution.

Safe havens are under pressure. Bonds, silver and gold continue to back down from recent highs. Conversely industrial commodities are in demand. Crude oil is up around 5% from recent lows, and aluminium and copper are regaining lost ground. The gains are supported by stronger exports from China and better than forecast French industrial production.

Weaker than expected US non-farm payroll numbers and soft German industrial production were largely ignored by share investors. Major indices across Europe and the US are higher. Higher leverage-to-growth IT stocks led the US markets as recently pressured chip-makers bounced back.

Asia Pacific stock trading is looking at a mixed start. Futures markets indicate gains for Hong Kong and Australia, and a slip in Japan. Shares in gas producer Woodside may come under pressure after the company lowered full year production guidance this morning.