Shares are rallying around the globe on the back of stunning gains for China listed stocks. After rising 7% last week, major Chinese indices added more than 5% yesterday as officially sanctioned news agencies called for further gains on the back of government policy. European and US indices lifted by 1.5% to 2.3%, base metals rose and the US dollar fell again.

In conflicting moves, haven assets also rose. Spanish ten-year bonds shed more than 20 basis points amid a curve flattening global bond rally. Gold lifted back to seven-year highs. The moves indicate the strength of the share market surge is at least partly explained by the flood of central bank stimulus funds.

Nickel and iron ore led the industrial metals markets higher, as traders anticipate stronger demand for steel as part of the Chinese government’s economic support efforts. Copper’s overnight gains mean it is now back to pre-Covid-19 levels. However crude oil markets fell, with traders concerned Wednesday night’s inventory data could reverse last week’s surprise draw.

The Australian dollar is trading near 70 US cents ahead of today’s Reserve Bank of Australia board meeting. Analysts expect no change to interest rates, and are looking for signs the central bank is canvassing unconventional monetary policy, given the often expressed view that interest rates are at “the lower bound”.

Asia Pacific stock futures are pointing to only modest opening gains, and a fall in Japan, reflecting the strength of yesterday’s trading session.