Global interest rate markets have been fast to price in the Bank of Japan’s unprecedented easing moves. However, Barclays says the same can’t be said of global equities, which have only just begun to price those actions as risk on. Why have global equities lagged? Barclays says it reflects weaker U.S. cyclical data and the euro area, differentiation by equity investors and initial skepticism about the global implications of QE in Japan. But the bottom line, says Barclays, is that the search for yield in bonds will eventually be felt in equities, and they see global equities grinding higher. As for where: Barclays says they remain constructive on developed-market equities despite the risk of any near term cyclical soft patch, and would buy on dips. One trade they’ve been recommending is long Spanish equities XX:IBEX +0.28% , while a new trade involves going long the FTSE 100 index UK:UKX +0.45% . They’re also long U.S. and European equities protected by hedges. More strategies from Barclays: Rates: Maintain exposure to 10-year U.S. Treasurys 10_YEAR -1.16% for insurance. Credit: Barclays is cautious given the narrowing of high-grade spreads to near post-recovery lows. “U.S. high yield did not participate in the latest rally and the carry opportunity leaves us comfortable with our neutral allocation,� says Barclays. Currencies: Bearish on British pound GBPUSD +0.43% , euro EURUSD +0.41% and yen USDJPY -0.23% versus the dollar, but stay long emerging-market currencies with fundamentals that are supportive. Commodities: Cautious on copper HGK3 +0.28% prices, given the forecast of a production surplus. As for gold, Barclays says the Bank of Japan easing supports the metal briefly, but the rally lacks conviction.

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