• Equity Markets: Equity markets had a moderately positive day yesterday with the S&P500 +0.11% and the Nasdaq +0.22%, as traders took a wait-and-see attitude ahead of the FOMC meeting next week. Europe was slightly better, closing a subdued +0.45%. In the US, it was a balanced day; five sectors were in positive territory and 50% of stocks ended higher. Industrials and IT were best, whilst Healthcare and Consumer Staples were weakest. Big Tech was a mixed bag with Nvidia (+2.1%), Meta (+3.4%) and Oracle (+3.2%) up, whilst Apple (-1.2%), Amazon (-1.4%) and Alphabet (-0.63%) were weak. Dollar General rose 14% on its raised guidance as consumers seek better value. In Europe, eight of eleven sectors were in positive territory, with Industrials and Consumer Discretionary best, whilst Healthcare and Utilities were worst. Ocado bounced 6.9% as it announced a $350m compensation payment from Kroger and a target to be cash flow positive for FY26. European automakers rose 3.1% as a group on a broker sector upgrade.
• Macro: In macro news yesterday, in Europe, Germany’s Construction PMI rose in November nicely to 45.2 from 42.8. In signs of further UK economic weakness in November, New Car Registrations declined 1.6% YoY and the UK’s Construction PMI fell to 39.4 from 44.1 previously, well below estimates of 44.6. EU retail sales in October rose 1.5% YoY, above the +1.3% est. and +1.2% previous result. Irish GDP was -0.3% QoQ for Q3, but 10.8% YoY, whilst the more meaningful Modified Domestic Demand (MDD) statistic rose +2.3% QoQ or 5.1% YoY. In the US, the Challenger Job Cuts rose 23.5% YoY to 71.3K, which was below the +48.0% est. Initial Jobless Claims came in at 191K, below 220K est. and lower than 218K previously. Factory and Durable Goods ex Transportation Orders remained subdued at +0.2% and +0.6% QoQ. Economic releases today include Eurozone GDP (3Q T) and Employment (3Q F). From France we get Trade Balance (Oct), Current Account Balance (Oct), Industrial Production (Oct), and Manufacturing Production MoM (Oct). From Germany we have Factory Orders (Oct). From Ireland the Live Register Level (Nov). And then from the US, we get Personal Income and Spending (Sep 0.3% est for both), the well-watched Core PCE Price Index (Sep 2.8% est.), University of Michigan Sentiment Survey (Dec P. 52 est.) and lastly Consumer Credit (Oct)                                                                                                                           
• Debt: Bond yields (ex UK) moved higher yesterday afternoon following a much larger than expected fall in the US jobless claims numbers that sent 10-year Treasury yields higher.

• Asset Allocation
• Focus Feature: Economist Alan McQuaid takes a look into the state of the economy, both at home and abroad as we head into the second quarter of the year.
• Wealth Management: Michael Foley explores estate planning and the benefits of a bare trust.
• 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: David Lawlor spotlights some of the key trends impacting global real estate investment following the MIPIM 2023 event, while Myles Dwyer takes a look at what’s driving growth at Farra Marine.

Opportunities this week:

• L’Oreal (Hold PT: €415 Upside 7%): Lookahead to Q3 results (tomorrow) and partnership with Kering announced today.
• AIB Group (Overweight PT: €8.30 Upside 12.5%): Commentary on recent weakness in US regional banks and subsequent sell-off.
• Flutter (Overweight PT: $293 Upside 16%): Commentary on good growth prospects despite recent headwinds and weakness in share price.