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The Bank of Japan’s Tankan points to activity rebound, but it should remain dependent on global recovery and what comes first is a new recession. Asian equity markets were down overnight on worries linked to the spread of the Delta variant. European markets followed the same trend yesterday, but US stocks were more resilient, with only tech shares posting losses. Bond yields have continued adjusting downwards ahead of the key ISM and job reports today and tomorrow. The USD keeps on strengthening, the EUR/USD exchange rate now trading below 1.1850, its lowest level since early April.
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