European Central Bank president Mario Draghi re-assured investors after an overnight meeting of the Governing Council. Shares and industrial commodities rose after Draghi detailed discussions of potential rate cuts, bond purchases and unconventional monetary responses to any trade dispute drag on European growth. The gains came despite US vice-president Mike Pence re-iterating plans to impose new tariffs on Mexican goods on Monday.

Currency traders appear caught between the threats to global growth and the more accommodative stance of global central banks. Minimal movement and tiny trading ranges for the US dollar, Euro, Japanese yen and Mexican peso indicate a stand-off. Commodities sent mixed signals. Oil and copper rose in US trading but gold maintained recent gains, signalling support at both ends of the risk spectrum. Bonds resumed their recent rallies, tilting the overnight action towards risk aversion.

Futures markets indicates Asia Pacific investors will follow the positive international leads. The normally influential US non-farm payrolls data due tonight is less important today given the focus on trade negotiations.

The renewed support for energy and base metals prices could see the Australian share market outperform today. Home lending data for April is forecast to show a flat month, although the circuit breaking Federal election results militate against a strong reaction.