In today’s briefing:
- SPX 4,200 Risk off Drivers
- Standard Chartered: FAB’s StanChart Bid Could Draw Plenty of Regulatory Scrutiny
- South Korean Banks Screener; Highlighting Industrial Bank of Korea (024110 KS)
SPX 4,200 Risk off Drivers
- The stage is set for an equity/risk off decline after the SPX met our 4,200 rally objective as have Asian and European indices.
- We are treating the DXY 101 low as a key USD turn support that will see dollar upside follow through on the back of a bullish 10 yr yield breakout.
- Equity weakness due from mid- Feb into Q2. NDX is hovering near pivotal lows (tech/growth U/P). Scales are tipped toward new lows.
Standard Chartered: FAB’s StanChart Bid Could Draw Plenty of Regulatory Scrutiny
- FAB’s bid will be the fastest and easiest way to increase its global and product reach.
- The deal is likely to face plenty of scrutiny due to StandChart’s complexity.
- With ample capital, liquidity and on path for profit recovery, StandChart is not in need of a deal.
South Korean Banks Screener; Highlighting Industrial Bank of Korea (024110 KS)
- In our latest South Korean banks screener; we add Industrial Bank of Korea to the buy list alongside Hana Financial; we cut KB Financial to a neutral rating
- Industrial Bank of Korea has very attractive multiples and PEG ratio and the best pre-provision and post-provision returns of the peer group, it also has sound broad credit quality metrics
- We introduce a broader credit quality metric to the screens and also EPS revisions over the last week and last month to give a sense of earnings momentum changes
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