Pro-growth moves lifted markets around the globe in overnight trading. Oil prices bounced after recent pressure, base metals rose and commodity currencies dominated forex gains. Shares rallied in Europe and the US, despite the rejection of Italy’s budget proposals by the European Union. The safe haven status of the US dollar and Japanese yen dragged both lower, although bond markets were largely mute.

The pro-growth moves also shrugged off a 4.4% drop in US October durable goods orders. Tech and energy stocks led the rallies. Bears pointed to the Thanksgiving shortened trading week, and the phrase “dead cat bounce” got a good work out. Action over December will determine whether this is a short-term, corrective rally or the beginning of the regularly observed seasonal lift in investor sentiment.

There is little macro data to guide Asia Pacific investors today. Japan’s CPI this morning is forecast to show a lift in October to 1.4% pa from 1.2% previously, although there are low expectations of market impact unless a highly divergent number drops. Australia 200 index futures are up just 18 points at the US close. The strength in commodity markets and technical buying on the back of yesterday’s bounce off lows to close above longer term support at 5,640 may see further gains.

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