Markets recovered their risk appetite in overnight trading. Shares rose and bonds fell. The US dollar gained against the Euro and Yen, but commodity currencies featured as West Texas crude oil pushed up through $60 a barrel. The lift in sentiment comes ahead of the resumption of China/US trade talks tomorrow.

In a data-light session it appeared the shift in market thinking is a response to bond markets taking the foot off the accelerator. Bond prices were flat or modestly lower, although signs remain that not all investors are convinced. German, Swiss and Japanese ten-year bond yields persist below zero, and gold still enjoys support.

Share markets were led higher by energy and financial stocks. Tech stocks also gained, pushing the Nasdaq to outperform the S&P 500 and the Dow. Futures markets indicate Asia Pacific investors may be more cautious, and are only modestly higher despite the European and US gains.

Deals could drive Australian trading. Rare earth miner Lynas announced it will not engage with bidder Wesfarmers on the currently offered terms, which may see selling in the former and buying in the latter. Investors may also focus on supermarket group Coles after it revealed a deal with online retailer Ocado to boost its digital offering.