Daily Market Color October 23, 2015Appetite for Risk Continues Off the Back of Chinese Rate Cut and Tech Earnings Stocks added to their recent gains while Treasury yields and swap rates traded higher across the curve after China unexpectedly cut its benchmark lending rate and reserve requirements for banks. The PBoC’s 25 basis point reduction is its sixth cut this year and the latest attempt at invigorating its slowing economy. Beijing is under pressure to meet its 7% growth target amid the 11th straight month of falling imports and over 3 years of deflationary producer prices. The announcement came one day after the European Central Bank said it is prepared to expand its monetary stimulus when it meets in December. The US monetary policy divergence continues as the Fed considers raising rates between now and the end of the year, while central banks in China, Europe, and Japan weigh additional stimulus. Corporate earnings also added to the bullish sentiment for stocks, led by strong results from Alphabet (Google’s parent), Microsoft, and Amazon. There is little in the way of US data today and Fed officials are in the blackout period leading up to next week’s FOMC meeting, so trading volumes are likely to be somewhat muted to close out the week. Have a great weekend.