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As US China trade conflict intensifies, we expect China policymakers to step up monetary and fiscal easing to soften the blow from higher tariffs,” they added.The world share markets had rallied in September on hopes that China and the United States will eventually work out a deal on trade, but talks proposed for around the end of the month collapsed after the two sides launched more tit for tat tariffs.MSCI broadest gauge of the world shares covering 47 markets rose for the third straight month in September.In the currency market, the Canadian dollar rose about 0.5 per cent to a four month high of $C1.2838 ($A1.38) to the US dollar .Canadian and US negotiators “made lots of progress” on Sunday on a renewed NAFTA, but had still not settled tough issues such as American tariffs and access to Canada dairy market, an official and sources said.US President Donald Trump administration has said Canada must sign on to the text of the updated North American Free Trade Agreement or face exclusion from the pact.Canadian media said Prime Minister Justin Trudeau will hold a cabinet meeting.The yen softened to 113.85 per dollar, its lowest since mid November last year.On the other hand, the euro was hit by worries about rise in Italy fiscal deficit after the Italian government agreed to set a higher than expected budget deficit target that could put Rome on a collision course with Brussels.The common currency traded at $US1.1608 ($A1.6065), having lost 1.2 per cent last week and off three month high of $US1.1815 ($A1.6351)5 touched a week ago. (Ray Ban Italy Vs Usa)