(Bloomberg) -- If you’re using financial markets to take the pulse of theglobal economy, your chart’s telling you the patient’s ready to runa marathon while in need of a stint in the ICU at the sametime.

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It all depends on the asset class you’re reading.

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The strong first-quarter performance of traditional safe-havenassets such as gold and yen implies caution. Meanwhile, theresilience of emerging-market assets sends the opposite signal.

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Related: 2017 to see more QDIAs, retirement incomesolutions

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Across commodity, foreign exchange, derivatives, bond and equitysectors, here’s what markets are saying about the well-being of theU.S. and global economies.

Dollar doldrums

After being one of the biggest beneficiaries of the reflationtrade following the election of Donald Trump, King Dollar was dethroned in thefirst quarter -- falling against every major currency tracked byBloomberg.

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A strong dollar tends to have a negative effect on credit growthglobally, a key impetus for an increase in economic activity. Alofty greenback also raises the cost of servicingdollar-denominated debt held abroad. As such, its retreat reflectsfirming growth outside the U.S. and serves as a source of supportfor the global expansion.

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The dollar hasn’t been weaponized yet by any measures intendedto encourage domestic production, namely, a border adjustment tax,and the cost of hedging dollar obligations has been trendinglower.

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Oil breathes life into inflation, drilling activity

West Texas Intermediate oil prices have rallied over the pasttwo weeks as major OPEC and non-OPEC producers indicated theirwillingness to extend production cuts. The stabilization in priceshas helped crude-producing regions in North America find theirfooting. It also provided a jolt to market-based measures ofinflation expectations and has supported other commodity prices,reducing fears about bond defaults in the energy and materialssectors.

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In Canada, the worst of the shock has clearly passed -- thecountry’s economic surprise index recently hit its highest levelsince 2010 amid job growth that’s exceeded analysts’ expectationsfor seven consecutive months. In the U.S., the rise in prices hasbolstered the fundamentals behind the pick-up in the number ofactive rigs.

Stocks say EMs doing better than U.S.

Benchmark U.S. equity indexes remain within reach of all-timehighs as earnings expectations climb, reflecting the anticipationthat the long American expansion hasn’t reached its expirationdate.

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However, segments of the market expected to be key beneficiariesof fiscal changes sought by the Trump administration, such asinfrastructure stocks and banks, have lagged the broadermarket.

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The rally in emerging-market indexes suggests the backdropoutside the U.S. has improved by more than it has domestically, atestament to the reflation trade’s global foundation.

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"We are seeing EM stocks outperform U.S. equities," writes NeilDutta, head of U.S. economics at Renaissance Macro Research. "Thisindicates improving growth outside the U.S."

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A more realistic curve

Differences between yields on short- and long-term U.S. Treasurybonds have declined from post-election peaks as investors temperexpectations surrounding how much pro-growth fiscal policies can beexpected to buoy domestic activity.

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The spreads between two- and 10-year Treasury yields, as well asthe gap between the five- and 30-year maturities, closer reflectthe expectations of relatively modest growth and inflation thathave guided the market since the global financial crisis, ratherthan the risk of a reflationary boom under Trump’s pro-growthpolicies.

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"Reflation expectations got ahead of themselves, and we’ve seena retracement of that," said Michael Dolega, senior economist atToronto-Dominion Bank. "Some of this is probably linked to softdata that came in way above expectations, but hasn’t materializedin the hard data yet"

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Even so, Dolega said he doesn’t expect a falter yield curve willbe a sufficient disincentive for the provision of providing credit,anticipating more constructive rate and regulatory environments forlenders going forward.

Safe havens

Gold turned in a stellar first-quarter performance, as risinginflation expectations buoyed the appeal of the precious metal. Therally has continued into the second quarter even as thoseexpectations ease.

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The trade faltered Wednesday for the first time this week as ADPdata on job growth added to signs of strength in the U.S. economyand bolstered the outlook for a steeper interest rate increase pathfor the Federal Reserve.

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The Japanese yen, another asset that tends to gain when marketparticipants are risk-averse, also turned in a strong first-quarter-- but that advance may soon falter.

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Currency strategists at Morgan Stanley contend the currency’sstrength relative to the greenback is "unsustainable and is likelyto be reversed within the coming weeks," pointing to a more hawkishFed and a looming rise in hedging costs. In addition, a bevy oftechnical indicators suggest the yen is due to retrace itsgains.

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