Making Sense

 Asia markets are seeing a rebound on risk sentiment after US equities fell with Dow leading losses of 1.89%. ECB kept the rates unchanged and stayed away from calling a peak in rates and focused on a data dependent approach.  Initial Jobless claims (IJC) rose 10K rom the prior week for the w/e 20 Oct to 210K while Continuing Jobless Claims (CJC) rose 63K to 1790K. CJC are seen rising since start of September and are at levels last seen in April end. Strong beat on U.S Durable goods orders, for the month of Sep, orders rose 4.70% yoy following a revised reading of -0.10% in the previous month. Pending home sales rose 1.10% mom following a 7.1% contraction in the previous month. US GDP beat expectations with Q3 growth seen at 4.9% following a 2.1% expansion in the previous quarter. The street took comfort from the core PCE deflator which came in below street estimates of 2.40% and the narrative that Q3 marks a peak in growth. A Research house reported that the PCE deflator impl...

US Treasury, Federal Reserve and FDIC in a joint statement announced decisive steps to protect depositor's money. 1. Depositors will have access to all their money starting Monday, March 13. 2. FDIC will complete the resolution of SVB Bank and any losses associated with the resolution will NOT be borne by the tax payer. However, Shareholders and Unsecured Debt holders will not be protected. 3. A similar resolution was announced for Signature Bank (assets of $ 110 bn) which closed on Sunday. 4. A separate additional funding facility was made available - " Bank Term Funding Program (BTFP)" - to eligible depository institutions to help banks to meet the funding needs of all their depositors.  The facility will offer loans of upto 1Y pledging US Treasuries, Agency Debt, MBS and other qualifying assets. These assets will be valued at par. 5. Treasury made available $ 25 bn from the Exchange Stabilization fund as a backstop to BTFP.  The risk sentiment recovered with S&P fu...