A pass from the Bank of England, weaker than forecast US inflation and mixed industrial production data saw bonds yields slip and stocks rally in overnight trading. The US dollar retraced, boosting most currencies. Oil remains centre stage, hitting fresh three year highs as Israel and Iran traded claim and counterclaim.

BoE governor Carney flagged several weeks ago that interest rates were likely to stay on hold. Nevertheless the combination with weaker CPI reads in the US meant global investors turned more dovish, supporting asset prices generally. The consequent 0.6% slip in the US dollar index boosted commodity prices as well as currencies. Gold, oil and copper oil headed higher, pointing to support for industrial exposures in Asia Pacific trading.

An acceleration in Italian industrial production offset lower than expected UK growth. Yesterday’s data showed inflation in both China and the US is softer, reducing pressure on the respective central banks to tighten conditions. The supportive monetary policy environment could see regional markets outstrip the modest opening gains indicated by futures markets.