Along with rising oil prices this morning, it has become quite clear that there is a commodities boom underway. The implications are two-fold: (i) the business/economic cycle and the inflation cycle are converging, and (ii) central banks will be raising interest rates farther and longer than financial services companies or governments wanted.

This morning, because the trading is so erratic, let me report that gold has traded up to $540, which is an increase of over +2 pct. Silver, platinum and copper prices are along for the ride.

In the Asia Pacific equity markets, the major miners are trading up from +0.5 pct to +1.75 pct, but many of the second tier miners are up close to +9 pct on the session.