• Equity Markets: Equity markets ended negatively yesterday as investors look for new catalysts amid risks of a weakening job market and stubborn inflation. The S&P500 finished down -0.28%, and the Nasdaq fell -0.37%, Europe was down -0.19%. In the US, four of the eleven sectors were in positive territory and 43% of stocks ended higher. Energy (+1.23%) and Utilities (+0.73%) were the best performers. Materials (-1.59%) and Real Estate (-1.01%) were weakest. Micron Technology fell (-2.82%) as the company’s forecast underwhelmed investors, despite its better than expected first quarter revenue and profit estimates. In Europe, four of the eleven sectors were positive, with 38% of stocks ending higher. Energy (+1.48%) and Utilities (+0.61%) were strongest, while Consumer Discretionary (-0.90%) and Health Care (-0.73%) were weakest. LVMH fell (-2.69%) yesterday, after a broker mentioned that its third-quarter revenue forecast for LVMH is 2% below the market consensus and that it has also cut its full-year outlook for the luxury goods company.
• Macro: In economic news out of Europe yesterday, the IFO business climate index fell to 87.7 in September from a revised 88.9 in August, coming in below estimates of 89.4. supporting the view that higher U.S. tariffs are putting pressure on Germany’s economy. This morning, Germany’s Consumer Confidence came in at -22.3 (vs -23.3 est.). In the US, MBA mortgage applications rose for the third consecutive week to (+0.6%), after rising (+29.7%) in prior week. U.S. new-home sales jumped 20.5% to 800k (650k est.) in August to their highest level since early 2022, fuelled in part by builder's discounts and buyer incentives. For economic releases today, in the US we have Initial Jobless Claims, Durable Goods Orders and Existing Home Sales. From the central bankers, we will hear from the Fed’s Goolsbee, Williams, Schmid, Bowman, Barr, Logan and Daly as well as the ECB’s Kazimir.
• Stocks: Cairn Homes: (Overweight PT: €2.46: 27% Upside): Glenveagh / Cairn Homes H1 results read across. PayPal (Overweight PT: $97: 44% Upside): Details relating to a two-year agreement with Blue Owl Capital. Nestle (Overweight PT: CHF88.67: 24% Upside): Update on the strategic review of Vitamins business segment. TotalEnergies (Overweight PT:€62: 16% Upside): TotalEnergies has been chosen by the French government to operate the “Centre Manche 2” offshore wind farm.
• Debt: Despite a weaker than expected German IFO yesterday morning European bonds remain in a tight range with 10-year Bunds stuck around 2.75%.

• Asset Allocation
• Focus Feature: Paschal Donohoe on What's Next for Ireland. We hosted an exclusive sit-down conversation with then Minister for Finance, Paschal Donohoe, at our Dublin offices in November, in which the Minister shared his valuable insights with Finance Correspondent for The Currency, Sean Keyes.
• 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: Head of Corporate Finance, Conor McKeon, reviews a year of successful exits & provides a look forward to 2023

Opportunities this week:

• This morning Ryanair reported Q1 FY26 results, that beat expectations across the board, we retain our price target at €28.00, with an unchanged recommendation of Overweight.
• For GSK, following the FDA's ODAC committee voting against the recommendation of Blenrep for treating Multiple Myeloma, we are lowering our price target to 1660p from 1820p and maintain our Overweight recommendation. (c. 22% upside)  
• Following the deal announcement last Tuesday, we have changed our recommendation on the Dalata stock with a PT of €6.45 revised downward from our previous target of €6.93, with a Neutral position.