A sentiment reversal on the back of encouraging US data should see positive momentum in Asia Pacific markets today. Despite negative futures markets the Australian share market is also set for a bounce. Bank stocks are likely to rally as the new levy on liabilities was arguably more than fully priced in the sell-off over the previous sessions. Overnight rallies in oil and gold should also provide support.

US Producer prices rose more than expected, suggesting expansion in the US economy is accelerating. Dropping alongside weekly jobless claims sustaining historic lows the numbers turned investors around. The S&P 500 index recaptured almost all of the 0.7% loss from the first hour of trading. However investors clearly have difficulty buying a market within 0.5% of its all-time high, favouring defensive utility and healthcare stocks. Late rallies in gold and bonds underscored the caution.

Local investors are facing another low data day. A report on Australian credit card purchases is unlikely to influence trading, nor are Japanese money supply numbers. Two days of gains in oil prices could support risk appetites. A realistic scenario is a start in the red for most indices, followed by a quiet bubble higher over the session.

CMC Markets is an execution-only service provider. The material (whether or not it states any opinions) is for general information purposes only, and does not take into account your personal circumstances or objectives. Nothing in this material is (or should be considered to be) financial, investment or other advice on which reliance should be placed. No opinion given in the material constitutes a recommendation by CMC Markets or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person.

CMC Markets Singapore may provide or make available research analysis or reports prepared or issued by entities within the CMC Markets group of companies, located and regulated under the laws in a foreign jurisdictions, in accordance with regulation 32C of the Financial Advisers Regulations. Where such information is issued or promulgated to a person who is not an accredited investor, expert investor or institutional investor, CMC Markets Singapore accepts legal responsibility for the contents of the analysis or report, to the extent required by law. Recipients of such information who are resident in Singapore may contact CMC Markets Singapore on 1800 559 6000 for any matters arising from or in connection with the information.