Equity markets, notably the developed markets, start the quarter having reclaimed most of what they lost in the sell-off from February's top. Developing markets, which haven't done much of anything over the past few months, that is, at least until recently, start the quarter at new highs for the year as the chart shows

David Fuller's view In addition to QE2, negative real rates and Japan's considerably more accommodative monetary stance in response to the tsunami disaster, I think that some of the fuel for recent stock market rallies is also coming from investors who are still lowering their overweight positions in bonds.

The monetary background remains bullish, despite somewhat higher rates in stronger economies. However, the massive Achilles' heel for stock markets - actually, more of a two legs and backside risk - is the ongoing strength of so many commodities.

Commodities remain in a secular bull market and when too many resources trends run white hot, stock markets suffer. A mild setback for commodities, notably crude oil and staple foods, would be good news for global stock markets, not least in Asia.