News of new trade talks between China and the US and an easing of emerging market fears brought markets back to life overnight. Shares in Europe and the US rallied, and base metals bounced back from recent losses. The US dollar eased lower, but bond markets failed to confirm the sentiment shift.

Asia Pacific investors are looking at a better day. Hang Seng and Nikkei futures rose overnight. Despite the better outlook Australia 200 futures are down a few points, possibly as a result of a hangover from yesterday’s outperformance. The focus remains corporate earnings but with only three top 200 Australian companies reporting investors have a moment to draw breath.

Adding to the positive tone is a more stable emerging market environment. Qatari assistance helped stabilise the Turkish Lira, although Turkish stocks continued their tumble. Rational or not, fears of contagion have depressed emerging currencies and shares. The easing of concerns may see a surprisingly strong turn around today.