After a nervous start last week, markets welcomed the dovish tone of Fed chair Jay Powell’s speech at the Jackson Hole Symposium. His sanguine assessment of the inflation risk, and patient attitude with respect to the tapering of asset purchases were the green light that equities and credit investors awaited to overcome their concerns about global growth, which had prevailed through most of August. Friday’s market rally carried over into the start of this week, with EM equities, commodities and EM FX doing particularly well. Spreads narrowed across the board and the EM sovereign debt index is now in positive territory for the year. Now that those dreaded summer markets are firmly behind us, and the green light is on for the cyclical trade, investors are facing an avalanche of economic data releases this week, including the US payroll report on Friday. In EM, China dominated headlines with an abundance of micro policy announcements, but local equities are participating in the rebound; Hungary and South Korea hiked rates, and Chile will likely hike again this week; Peru’ cabinet passed the confidence.