Weak overnight share trading and falls in crude oil and gold should see Asia Pacific shares under further pressure today. However local investors are leading the current round of global selling and may confound international leads.

Bond selling and easing precious metals prices suggest global investor sentiment is receding from the risk averse high water mark hit this week. Although this should lead to higher stock prices over the coming sessions, today may only mark the turn, with mixed futures leads and lower volumes pointing to subdued trading conditions.

Currency markets are also sending conflicting signals. A lower AUD may make Australian shares more attractive, but a stronger JPY could work against the Nikkei.  The US reporting season has switched back to supportive mode, with consensus beating earnings from American express, Qualcomm and Ebay. However the data released overnight did not speak to the weakness in previous bank reports, and financial shares may remain the weak link in trading today.