Growth exposed markets lifted overnight as investors eyed the first negative month for shares since March. Share markets rebounded from September lows, base metals rose and energy markets moved higher following better news on Chinese industrial profits over the weekend. A slip in the US dollar after a week of solid gains also brought modest support for gold and bonds.

European indices led the way, lifting 2% to 3% on solid support for financial shares. European Central Bank President Christine Lagarde calmed investor nerves when she told politicians that the central banks stands ready to adjust policy as required in response to pandemic threats. The momentum flowed into US trading, producing broad based gains of around 1.5%. Banking stocks featured again. Futures markets indicate a positive start to Asia Pacific trading today.

The promise of potential ECB support brought initial Euro weakness, but reports of another US fiscal support package offset the pressure and the US dollar index fell for the first time in seven trading sessions.  Gold rose by $6 per ounce in response.

Month end effects may dominate market action over the next two sessions, with possible support for shares as portfolio managers take advantage and short sellers lock in gains. However by Thursday the focus will likely return to the US election cycle following Wednesday night’s presidential candidates first debate.