• Predictably, markets are off to a quiet start this morning because the US closed for the labor day holiday. Equities in the Asian session are mostly up, with the Nikkei leading the pack. In fact, Japanese shares have staged a miraculous rebound, with the Nikkei gain nearly 7% over the past four weeks and inching closer to its post-outbreak high of 30,467 points.
  • Commodities have benefitted from recent dollar weakness. That has resulted in the commodity indices that we track having nearly returned to their earlier summer highs, which happen to be the highest level since the pandemic outbreak. All in all, the overall market picture remains very much the same: exuberant equity prices, a commodity rally that remains fully intact, the easiest financial conditions in our careers as measured by deeply negative real rates and very, very ample liquidity conditions.

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