• Equity Markets: Equity markets had positive day yesterday with the S&P500 +1.52% and the Nasdaq +2.62%, as tech led the market up again, with investors more optimistic about a December Fed rate cut. Europe lagged but was still up +0.14%. In the US, nine sectors were in positive territory and 51.5% of stocks ended higher. Communication Services and IT were best. Consumer Staples and Energy were weakest. Broadcom (+11.1%), Alphabet (+6.3%) and Tesla (+6.8%) led the market up. Alphabet was strong on reports that Meta was in talks to buy Alphabet’s inhouse AI chips. Tesla is also reported to be close to finalising its next gen AI5 in house chip. In Europe, six of eleven sectors were in positive territory, and 64% of stocks were up with IT and materials best, with Consumer Staples and Communication Services worst. Semiconductor related names were up on the Alphabet and Tesla chips news. Novo Nordisk was down -5.8% on the failure of its Alzheimer’s drug trial.
• Macro: In Europe, the German IFO Expectations data came out below estimates for November at 90.6 versus 91.6 est. and 91.6 prior reading. This morning, EU27 New Car Registration data showed a 5.8% YoY increase, down from a strong +10.0% previously, and German Final GDP release for Q3 came in unchanged from preliminary readings at +0.3% YoY. In the US, only the Dallas Fed Manufacturing Activity index was released with a -10.4 read for November, well below -2.0 estimate and -5.0 prior.Economic releases today include the UK’s CBI Retailing Reported Sales (Nov). Then later from the US we have a raft of data including Philadelphia Fed Non-Manufacturing Activity (Nov), Retail Sales (Sep est. +0.3% MoM), PPI Final Demand (Sep est. +0.3% MoM), FHFA House Price Index (Sep est. +0.2% MoM), S&P Cotality CS 20-City House Prices (Sep est. +1.4% YoY), Business Inventories (Aug est. 0.0%), Richmond Fed Manufact. Index (Nov est. -5), Conf. Board Consumer Confidence (Nov est. 93.3), Pending Home Sales (Oct est. 0.4% MoM), Dallas Fed Services Activity (Nov).
• Stocks: Novo Nordisk: (Overweight TP DKK451, c.57% Upside): Commentary relating to Alzheimer’s drug tests and revised price from DKK 474 to DKK 451. IRES: (Overweight TP €1.26, c.36% Upside): Details on Q3 trading statement.
• Debt: Bond markets remain quiescent with little impetus from mostly stale economic data. Yesterday saw a slightly weaker IFO driven by the Expectations component but no follow through

• Asset Allocation
• Focus Feature: Economist Alan McQuaid takes a look into the state of the economy, both at home and abroad as we head into the second quarter of the year.
• Wealth Management: Michael Foley explores estate planning and the benefits of a bare trust.
• Analyst Conviction List: The investment case for our preferred names.
• The Fund Edit: Latest update on our range of investment funds, ETFs and trusts.
• Ethical Investing: Green Effects providing sustainable investment returns.
• Corporate Finance News: David Lawlor spotlights some of the key trends impacting global real estate investment following the MIPIM 2023 event, while Myles Dwyer takes a look at what’s driving growth at Farra Marine.

Opportunities this week:

• Kerry Group (Overweight PT: €111.69 Upside 47%): Recap on Kerry Group Investor Day in Naas.
• CRH (Overweight PT: $102.80 Upside 15.8%): Recap on latest Investor Day and positive medium term outlook.
• Supermarket Income REIT (Overweight PT: 90P Upside 13.3%): Commentary on meeting with senior management team last week.