Macro: Equity markets had a mixed day yesterday with the S&P500 +0.38% and the Nasdaq +0.24%, as, despite a solid 30-year treasury auction, geopolitical tension rose again as news outlets reported that Israel was considering military strikes on Iran, which subsequently happened overnight. Europe was weaker, declining -0.33%. Economic releases today include the UK’s BOE/IPSOS Next 12 Month inflation survey in April, the EU’s trade balance and EU Industrial Production. Over in the US, the only item out is the June University of Michigan’s Sentiment index at 15:00 (est. 53.6 and 52.2 prev.) It is all quiet on the central bankers’ front on Friday.

Stock: We have an update on GSK. (Comment attached)

Debt: US Bonds rallied on a successful $22bn 30-year US Treasury auction, and as unemployment and PPI data were weaker than expected

Opportunities this week:

• We highlight a number of reasons why Bank of Ireland’s net interest income is expected to have a muted correlation with falling ECB rates, and why substantial return of capital is expected. (Buy PT: €11.70).
• We increase our CRH price target and discuss why we view the upcoming Q3 earnings season as another opportunity for CRH to illustrate the strength of its integrated business model, which should result in continued outperformance relative to its peer group. (Buy, PT: $106)
• We are downgrading our rating on Deere & Co due to ongoing demand issues leading to increased layoffs and dealer inventories, as well as an FTC investigation into its repair policies. (Neutral PT: $410)