• Equity Markets:Global equities fell yesterday after the market reacted cautiously to weaker than expected earnings from Meta (-11.3%) and Microsoft (-2.90%). The S&P500 fell -1.0%, the Nasdaq dropped -1.50% whilst European stocks slipped -0.1%. In the US three of eleven sectors were positive with 46% of stocks up on the day. Real Estate (+0.65%) and Financials (+0.32%) were the strongest. Consumer Discretionary (-2.56%) and Communication Services (-2.14%) were the weakest. After the closing bell both Amazon and Apple released their quarterly results. For Amazon, the stock rallied 13.7% after a solid beat, driven by strong cloud growth. Apple’s stock also strengthened in the after-market, up 2.2%. Despite weakness in China, EPS reached $1.85 (est $1.77) with management confident of a strong bounce in iPhone sales over Christmas. In Europe three of eleven sectors were positive with 43% of companies finishing higher on the day. Information Technology (+1.07%) and Utilities (+0.58%) were the strongest. Consumer Discretionary (-0.93%) and Materials (-0.58%) were the weakest. Puma SA, saw its stock fall -8.8%, after the apparel brand missed Q3 estimates, and plans to cut 900 jobs. This follows on from weak results from Adidas on Wednesday (-10.8%).
• Macro:In macro news yesterday, starting in Europe, the ECB kept the deposit facility rate at 2.0% for the third meeting in a row. Post the decision President Lagarde stated, “The economy has continued to grow despite the challenging global environment”, a comment which echoed Eurozone GDP growth of 0.2% in Q3. In Germany, MoM CPI for October (preliminary) came in at 0.3% (est 0.2%) and 2.3% (est 2.2%) YoY. Overnight President Trump declared that both the US and China had “settled” their differences in relation to trade, in particular relating to China’s rare earths, with Trump stating, “there is no roadblock at all on rare earth”.In macro news today, French CPI is expected to be released shortly with the MoM and YoY rate for October expected to be 0.1% and 1.0% respectively. In the US Personal Income and Spending data for September is due to be released with both metrics expected to increase by 0.4%. From central bankers today the Fed’s Logan, Hammack and Bostic will all be speaking
• Stocks: Kingspan: (Overweight. PT: €84.70, c.27.5% upside): Commentary on share price decline and Carlisle Companies Q3 results. AIB: (Overweight. PT: €8.30 c.5% Upside): Detail relating to cancellation of the Irish Government’s 271.2m warrants. Greencoat Renewables: (Overweight. PT: €1.015, 44% upside): Update on Q3 results and revised higher price target from €1.01 to €1.015. Apple (Neutral PT: $253, 7% upside): Update following Q4 results with increased price target from $225 to $253.
• Debt:Bond yields stabilised yesterday after the Powell induced selloff, as the ECB’s rate hold decision failed to inject any volatility.

Opportunities this week:

• Following news at the end of last week regarding the French air traffic controllers strike and a change in our analyst coverage for Ryanair, we reiterate our Overweight rating and change our price target from €25.30 to €28.00.
• On Friday, China announced it will impose anti-dumping duties of up to 34.9% on brandy imported from the European Union, effective from 5 July 2025. We continue to take a positive view on LVMH with a target price of €589.
• This morning, Shell released its regular quarterly Update Note ahead of Q2 results. We reiterate the target price of £31.00 (c. 18% upside).