Rally resumes after consolidation phase Wednesday 08:00 GMT. Global stocks are tentatively resuming their New Year rally after Alcoa set a mildly positive tone for the US fourth quarter earnings season. The FTSE All-World equity index is up 0.2 per cent after the Asia-Pacific region added 0.4 per cent an as the FTSE Eurofirst 300 opens with a gain of 0.4 per cent. Futures suggest Wall Street's S&P 500 later in the day will advance by 3 points to 1,460. The corollary to equity strength is often selling of fixed income boltholes, and consequently prices of US sovereign bonds are falling, nudging yields up 2 basis points to 1.88 per cent and equivalent Bunds are up 2bp to 1.51 per cent. Other cross-asset correlations are not as tight as that witnessed in the recent past, however. Industrial commodities are struggling for traction, with copper fractionally firmer at $3.67 a pound but Brent crude losing 12 cents to $111.80 a barrel. In addition, the dollar index, which tends to dip when the market feels more chipper, is up 0.1 per cent as the euro hovers barely changed at $1.3080. Gold, which seemingly revels in its defiance of attempts by traders to attach any correlationary rationale, is up $4 to $1,663 an ounce. The surge in many growth-sensitive products seen across the New Year period had faded for the first two days of this week, with the view among many traders that it represented a healthy consolidation after moves across asset classes that had gone a bit too far, a bit too quick. For example, the S&P 500 in just four sessions to Friday's close had jumped 4.6 per cent to a five year high, while Treasuries slumped, pushing 10-year yields over the same period up 20 basis points to 1.90 per cent, an 8-month peak. The advance was fuelled by relief that politicians in Washington reached a budget deal, evidence of improving economic conditions in the US and China, continued support from many major central banks, and a large dose of traditional turn of year exuberance as fresh strategies were put into play. With those issues pretty much baked into the market, investors are now looking for the next catalyst. The corporate earnings season is thus in focus. It has started in solid, if unspectacular fashion, with the traditional curtain-raiser from US aluminium producer Alcoa. Cynics challenge the extent that one Dow Jones Industrial Average constituent can influence the broader market psyche. But it is clear bulls would rather the company's fourth quarter results and outlook were well-received. Results in the US quieten down for a few days before Wells Fargo on Friday starts the ball rolling on big bank earnings - a sector with much to live up to given the KBW Bank index is up 27 per cent over the past year. Earlier in Asia, Tokyo's Nikkei 225 rebounded 0.7 per cent as investors welcomed another dip in the yen. The dollar rose 0.5 per cent to Y87.45 with traders absorbing news that the Japanese government is preparing another huge stimulus package and on hopes the Bank of Japan will ease monetary policy again this month. China's Shanghai Composite index recovered initial losses to close flat after Reuters reported that Beijing would freeze the IPO market until the end of March, a move that would be expected to reduce the supply of shares and potentially support prices.