- Market Round Up: US equities hit record highs yesterday, driven by hope of a Middle East ceasefire and a strong start to earnings season. The S&P 500 rose +0.8%, Nasdaq 100 jumped +1.6%, while the Stoxx 600 ended -0.4%. The risk premium eased as markets increasingly price in progress on US–Iran peace talks, despite ongoing tensions around the Strait of Hormuz. Tech led the gains, with investors rotating out of high-flying chips and into beaten-down software, with Oracle +4.2%, Microsoft +4.6% and the software industry up +4.5% in aggregate.In corporate news, banks had strong earnings, Morgan Stanley (+4.5%) and Bank of America (+1.8%) rallied as equity trading revenues beat expectations, helped by elevated volatility. ASML shares slid (-4.2%), despite the company raising full-year sales guidance, a move that appears to have been largely priced in by markets.In macro news, MBA Mortgage Applications showed a modest rebound, with the index up 1.8% over the week, after declining 0.8% the week before. US Empire Manufacturing index jumped to 11.0 in April, from -0.2 previously, with new orders and shipments at their highest levels since 2023. This morning in the UK, Industrial production, and Manufacturing production MoM both came in better than expected.
- Day Ahead and Market Drivers: Equities: Asian markets are weaker this morning, after a strong run in recent days, with Tokyo down 1.4%, Hong Kong down 1.2% and China down 0.3%. Truist Financial and State Street Corp will be reporting today to cap off a raft of financial firm results for the week.
- Stocks in focus: CRH – (Overweight PT $142 c. 21% upside) – TODAY’S delisting from LSE reminder. Bank of Ireland (Overweight PT €18.70, c. 11% upside) – Savings rate increase, London delisting and odd-lot offer
- Bonds: Bond yields were mixed with US and UK rates 3bps higher, whilst core Eurozone markets saw slightly lower yields (-1~-2bps).It is quiet on the supply front, with only the UK issuing short-dated bills. Today, there are very limited macro releases, though we have a number of speakers from central banks (Breeden (BOE), Huw Pill (BOE), Daly (Fed), Barkin (Fed) and Waller (Fed)) talking at the ongoing International Monetary Fund and World Bank meetings in Washington.
- Commodities: Yesterday, energy-related prices rose again, with crude up 3.5~4.5%, and jet fuel and diesel up 4% and 2.5% respectively. European Gas prices rose 2.5%. This morning oil prices are down 1% for Brent and -1.5% for WTI. Gold was slightly higher (+0.33%) yesterday, but this morning is slightly lower and remains largely unchanged over the week (0.8%).
Overview
Investment Solutions
Retirement Planning Solutions
SDIO
Application Forms – Intermediaries
Creating impact for your clients, their financial goals, and their future
Overview
Focused on your organisation, funding its growth, and unlocking its full potential
Debt Capital Markets
Probate Services
Dedicated to institutional wealth, stakeholder value, and a sustainable future
Overview
Investment Services
Stewardship
Supportive of you, your custodial vision, and your philanthropic goals
X