UBS' three reinitiates + America's yield curve inversion hits new lows

Charts and Caffeine

Livewire Markets

MARKETS WRAP

Source: Investing.com

S&P 500 TECHNICALS

Source: Yahoo Finance

THE CALENDAR

Source: Forex Factory

Unless you trade New Zealand dollars for a living, chances are macro observers can relax a little this week. Beyond the RBNZ, the biggest risk events of the week are those European PMIs and the Federal Reserve's latest meeting minutes.

THE CHART

Source: Liz Young, SoFi

The yield curve inversion was the headline of mid-2022 but in recent times, the inversion has actually deepened. Just a quick reminder - yield curve inversions have historically been a pretty good predictor of a looming recession (not the timing, just the fact a recession is coming.) 

TODAY'S TOP READ

Lawmakers who received millions of dollars in campaign donations from Sam Bankman-Fried could soon get something else from the former FTX chief executive officer: testimony under oath. And yes, it probably won't end well as this Bloomberg wrap so eloquently explains.

Bankman-Fried Turns Toxic in Congress Even Among Those He Backed (Bloomberg)

STOCKS TO WATCH

Today, we're looking at the financial services industry. In particular, UBS has initiated coverage of the three main players in that space:

HUB24's story is all about flow momentum, economies of scale, and plenty of margins. The broker anticipates a tough period ahead but expects Hub24 will remain an outperformer and likely deliver results ahead of consensus expectations. It gets a BUY rating with a $31 price target.

Insignia Financial gets the sole non-buy in this group, with the broker saying it's concerned about how overlapping products and systems will impact operations. It's a NEUTRAL-rated stock, with a price target of $3.40/share.

Clean and organic is the story of Netwealth, with the broker saying its story has been one - in the words of our friends at FNArena - "devoid of distraction". The broker expects specialist platforms to continue to dominate industry flows, supported by a regulatory tailwind. It's a BUY, with a punchy price target of $17/share.


Hans Lee wrote today's report.

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Charts and Caffeine
Markets Wrap
Livewire Markets

Charts and Caffeine is Livewire's daily pre-market wrap. We get you across the overnight markets and share the best in global finance so you can start your day on the front foot. Written by Hans Lee (Mondays - Thursdays) and Chris Conway (Fridays).

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