 Good morning to CMC Espresso from the Frankfurt office of CMC Markets. The Bank of Japan tonight pledged to increase purchases of exchange-traded funds, but kept interest rates steady at the close of its two-day meeting on Friday, confounding market expectations of hefty stimulus. The yen is stronger this morning, stocks in the Nikkei trade unchanged at this moment after a first negative reaction. The gold is also steady, but trying to make new gains. The Swiss Investment Bank Credit Swiss, meanwhile, asked their trader clients about how they feel about the current market environment, and the answer was unevolcably bearish, which is given the record highs on Wall Street, which is a bullish signal from a counter-signical standpoint because if traders stay bearish, they are still upside. It is even the case that Credit Swiss reported that they haven't seen their trading clients be so bearish about equity markets in years. Traders in this survey cited US corporate earnings that appear to have peaked, with labour increasingly gaining bar gaining power. At the same time, equities are cited as not being cheap in absolute terms anymore with the price earnings ratio of the S&P 500 28% above its 50-year average, while the Schiller price earnings ratio is 33% above its 50-year average. They also see a lack of rebalancing in China, an ongoing weakness in the renminbi, which is down 2.6% here to date, versus the US Dollar. So China is pretending to do reforms, but doesn't really do them, they just try to get more competitive on the export markets by devaluing their currency. After all, there is a lack of policy weapons left if there is a shock to growth, and even without any recession, there is abnormally high political risk, reflecting itself an increased protectionism, a desire to reduce immigration and a boost to minimum wages to rebalance the economy towards labour and away from corporates. So that is the negative argument traders of credit Swiss have right now, quite a bearish and bleak picture. Meanwhile, there is the highest combined long position by hedge funds and other traders in US trashries, meaning that the majority of the market has zero trust in the normalization pledges of the Federal Reserve. So if nominal rates go lower and inflation stays humble in the US, this could be an interesting time to come for gold and other precious metals, because if nominal rates go down, inflation stays up or even takes higher, it means that real rates, inflation adjusted rates go lower, and that has been a very good time in the past for the price of gold, so that should be what closely what the precious metal does on this and the following trading days.