It’s worth noting that comments from Saudi National Bank's Chairman, Ammar Al Khudairy, conveying the “sound” conditions of Credit Suisse join the major US banks’ efforts to help California-based First Republic Bank to avoid a liquidity crunch to favor the risk-on mood. On the same line was the news that Credit Suisse eyes borrowing up to CHF50 billion from the Swiss National Bank (SNB) to strengthen liquidity, as well as Reuters quoting anonymous sources to confirm that the US banks are less vulnerable to the Credit Suisse debacle. Furthermore, US Treasury Secretary Janet Yellen’s assurance over the US banking industry’s health and European Central Bank’s (ECB) 50 bps rate hike, matching expectations, also favored the sentiment and allowed the latest run-up in the Oil price.
On the contrary, a light calendar and the market’s lack of confidence in the global policymakers’ efforts to push back the financial crisis seem to weigh on the Oil price.
While portraying the mood, US 10-year and two-year Treasury bond yields struggle for clear directions as the previous day’s rebound fails to supersede the two-week downtrend. However, Wall Street closed in the green with more than 1.0% gains by each of the benchmark indices while S&P 500 Futures remain lackluster at the latest.
Moving on, traders should keep their eyes on the next week’s Federal Open Market Committee (FOMC) monetary policy meeting. Ahead of that, preliminary readings of the US Michigan Consumer Sentiment Index for March and the UoM 5-year Consumer Inflation Expectations for the said month will be important for clear directions.
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