• Equity Markets: Equity markets had a weaker day yesterday with the S&P500 -0.28% and the Nasdaq -0.08%, as the market paused following its strong recent run-up. Europe was also down -0.43%. In the US, only one sector was in positive territory and c. 76% of stocks ended lower. Consumer Staples and Communication Services were best. Materials and Industrials were weakest. Airlines rose +2.6% as Delta (+4.3%) reported robust demand looking ahead to 2026, with strong Premium and Corporate sales. In Europe, seven of eleven sectors were in positive territory, with Utilities and Materials best, and Consumer Discretionary and Financials worst. Following on from BMW’s weakness yesterday, Ferrari missed a gear and crashed c. -15% as the company’s guidance for 2030 fell short of market expectations.
• Macro: In Europe, final Irish EU harmonised CPI for September was steady at 2.7% YoY. In the US, all data was postponed due to the Federal government shut down.Economic data today is limited to the University of Michigan’s October Sentiment index, which is expected to show a slight deterioration in sentiment (54 est. from 55.1 previously). From the central bankers, today’s speakers will include Goolsbee, Daly, and Musalem, as well as the ECB’s Escriva.
• Stocks: Novo Nordisk (Overweight PT DKK489 29% upside): Update regarding announced acquisition of Akero Therapeutics.
• Debt: EGBs continued to trade within a very narrow range yesterday (Bunds 2-week range; 2.69%-2.71%), where again the focus was on French OATs.

Opportunities this week:

• Ahead of Kerry’s US investor day tomorrow, which should provide management with the opportunity to remind the market of the group’s positive momentum and growth trajectory, we are reiterating our BUY rating. (BUY PT: €106)
• This morning Shell issued its regular Q3 production update. (BUY PT £34)
• We held a constructive meeting with the management team for IRES REIT in our offices last week. (BUY PT: €1.18)