• Market sentiment stays cautiously optimistic amid sluggish week-start.
• S&P 500 Futures stay mildly bid after two-week uptrend, yields remain weak for the fourth consecutive week.
• Shift in Russia’s nuclear amenities to Belarus, talks of an SVB deal trouble traders amid light calendar.
• Dovish remarks from Fed’s Kashkari, mixed US data allow risk markets to grind higher, Fed’s favorite inflation gauge eyed.

Risk profile remains mildly positive after a volatile week as traders hope the policymakers’ efforts to tame banking turmoil would push back fears suggesting the return of the 2008 financial crisis. Adding strength to the cautious optimism are the recent comments from the central bankers who sounded less hawkish. Above all, a light calendar and a lack of major macros allowed traders to extend the previous weekly moves ahead of the key US inflation clues, namely the Core Personal Consumption Expenditure (PCE) Price Index, up for publishing on Friday.

While portraying the mood, US Treasury bond yields struggle to keep the three-week downtrend as benchmark bond coupons remain directionless around the latest multi-day lows marked in the last week. However, the S&P 500 Futures print mild gains around 4,010 at the latest and traces Wall Street’s gains to suggest a mildly positive risk appetite.

Among the major headlines, Bloomberg’s news surrounding the Silicon Valley Bank (SVB) seemed to have contributed to the risk-on mood. “First Citizens BancShares Inc. is in advanced talks to acquire Silicon Valley Bank after its collapse earlier this month, according to people familiar with the matter,” said Bloomberg.

On the same line were comments from Minneapolis Fed President Neel Kashkari who flagged fears of US recession and tamed calls of more rate hikes from the US central bank.