Tuesday saw J.P.Morgan note that "while....>

EQUITIES: Tuesday saw J.P.Morgan note that "while liquidity conditions have

normalized to a sig. extent in bond mkts, approaching pre-virus levels, this is

not the case for equities. Our mkt depth metric for S&P 500 E-minis has retraced

only 1/3 of its prev. decline, suggesting that equity mkts are still vulnerable

from a mkt liquidity point of view. Hedge fund redemptions slowed in Q2. For H1

as a whole, hedge fund outflows totalled only $45bn, < 1.5% of AUM, much < than

the 17% of AUM outflows during Q408 & Q109. With the global equity rally

entering its 4th month, one view that has emerged among some clients is that the

rally has been progressively becoming lower volume/lower conviction... If

anything we see that trading activity in USD terms was stronger in June across

both DM & EM equities vs. the prev. 2 months. This is also true with trading

turnover, i.e. annualized trading volumes divided by the size of each asset

class. Trading turnover was stronger in June vs. the prev. 2 months across both

EM & DM equities and within DM across both US & non-US equities. In fact, for EM

equities, the trading turnover in June was as high as in March. And for DM

equities the trading turnover for June was higher than that seen last February."