Economic calendar: Fed comes to rescue after SVB collapse

• European indices set for flat opening, US futures surge

• Fed and US Treasury launch emergency programme for banks

• Key US CPI and retail sales data for next week's FOMC decision

European index futures point to a flat opening of the cash session today while US index futures trade significantly above Friday's closing levels. It looks like contagion risk from Silicon Valley Bank collapse have been limited after the Fed and Treasury launched an emergency lending programme for banks and assured that SVB depositors will be protected and have full access to funds starting from today. UK authorities have also confirmed that UK arm of SVB was already sold to HSBC for 1 GBP and depositors of this branch are also fully protected now.  This has led to a relief rally on cryptocurrencies over the weekend as well as US index futures today.

Economic calendar for today is empty but SVB story will continue to be in the center of the attention today and in the coming days, especially as US banking sector woes led to a big drop in rate hike expectations for next week's FOMC meeting. Market is now pricing less than 100% chance of a 25 rate hike while odds were for a near certain-50 bp rate hike as recently as Thursday. US CPI data on Tuesday and retail sales report will be final pieces of top-tier US data ahead of the FOMC decision scheduled for Wednesday next week. Also, traders will get to hear from ECB this week with 50 bp rate hike being seen as the base case scenario.

Key events in the later part of the week.

Tuesday

• 7:00 am GMT - UK, jobs report for January.

• 12:30 pm GMT - US, CPI inflation for February

• 8:40 pm GMT - API report on US oil inventories

Wednesday

• 2:00 am GMT - China, monthly activity data for February

• 12:30 pm GMT - US, retail sales for February

• 2:30 pm GMT - DOE report on oil inventories

Thursday

• 0:30 am GMT - Australia, jobs report on February

• 12:30 pm GMT - US, building permits and housing starts for February

• 1:15 pm GMT - ECB rate decision

Friday

• 10:00 am GMT - Euro area, CPI inflation for February (final)

• 2:00 pm GMT - US, University of Michigan index for March