Bonds reversed recent strength, industrial metals jumped and stocks held higher ground in overnight trading as markets edged towards growth exposures. The shift in market thinking occurred as US data showed a surprise lift in consumer confidence, conditions and expectations. The momentum may see Asia Pacific markets outstrip currently negative futures market indications. USD/JPY could prove a focus for traders ahead of this afternoon’s consumer confidence read in Japan.

European and US bonds faced selling pressure. The yield on US ten year bond rose to 2.88%, from lows just two days ago close to 2.80%. Dollar weakness evaporated, and currency markets largely marked time as traders await the next move in global trade negotiations.

After a rally in Shanghai trading base metals surged in London. Aluminium and Zinc led with gains close to 2%.  This may see the Australia 200 index surprise investors today. Although there are no local data releases the strength in resources and some solid corporate reporting could overcome the 6 index points shed in overnight trading.