• Macro:US equities had a weak day yesterday as concerns about overvaluation in the technology sector combined with caution ahead of Jackson Hole weighed on sentiment. The S&P 500 fell 0.24% while the Nasdaq dropped 0.67%. European stocks closed the day up 0.23%. In the US seven of eleven sectors were positive with 51.7% of stocks trading higher. Energy (+0.86%) and Consumer Staples (+0.80%) were the two strongest sectors. Consumer Discretionary (-1.18%) and Information Technology (-0.77%) were the weakest. In Europe eight of eleven sectors were positive with 53.2% of stocks finishing higher. Consumer Staples (+2.28%) and Utilities (+1.17%) were the two strongest sectors. Information Technology (-1.29%) and Industrials (-1.10%) were the weakest. Rockwool A/S the Danish building materials company saw its stock fall 16% after the company lowered its revenue forecast. In macro news yesterday the release of the July Federal Reserve Minutes indicated that policymakers viewed the risk of inflation as outweighing concerns over the labour market hence raising questions marks on the timing/scale of interest rate cuts. The minutes may well provide an insight into what the market can expect to hear from Chairman Jerome Powell on Friday at the Jackson Hole Symposium. President Trump also called for the resignation of Lisa Cook, a member of the Federal Reserve Board of Governors over allegations of mortgage fraud. Looking to macro news today preliminary August HCOB Manufacturing PMI’s will be released in France, Germany and the Eurozone whilst in the UK and US S&P Manufacturing and Service PMI will also be released. Staying in the US, Initial Jobless Claims for the week ended 16th August will be updated (Est 226k) alongside Continuing Claims from August 9th. US existing Home Sales (Est 3.92m) and the Leading Index (Est -0.1%) for July will also be released. Central bank speakers today include the Fed’s Bostic at 12:30.
• Debt: There was a healthy rally in European and UK bonds yesterday despite the higher-than-expected UK CPI print. Market took some comfort that the UK numbers weren't too out of line with the BOE's own forecasts.

Opportunities this week:

• The recent dip in L'Oréal's share price, as well as the potential for more political stability in France, presents an opportunity for investors to add exposure to an attractive name at a discount. (BUY PT:€450)
• We held a meeting with senior management of Cairn Homes last Friday, following the release of the company’s interim results earlier in the week. (BUY PT: €2.08)
• Last week, we met with the CEO and CFO of Irish Continental Group to discuss H1 results, and group strategy and outlook more generally. We came away with confidence in the company’s steady growth prospects and operational efficiency focus (BUY PT: €6.20).