• Macro: Equities in Europe showed mostly positive performance to kick-off September yesterday, which is traditionally a difficult month for markets. The Eurostoxx600 ended broadly unchanged, whilst the CAC40 and the DAX both moved modestly higher. Markets in the US were closed for Labour Day. In economic news during the day ahead, investors should get evidence that US manufacturing activity continued to contract in August but that the rate of contraction has moderated according to the ISM Manufacturing Index. The August ISM Prices Paid Index is to show an expansion, but more moderate than the July print. Additionally, Construction Spending in the US is forecast to have rebound marginally in July following to successive monthly declines. Data is light out of Europe, but we will have commentary out of Joachim Nagel from of the ECB.
• Stock: We have updates on Ryanair, Volkswagen and Uniphar.
• Debt: Core bond yields moved higher yesterday in a light day of economic data.

Opportunities this week:

• Following Cairn Homes’ strong H1 trading statement last week which served as a reminder that its impressive earnings growth is likely to continue in the years to come, we reiterate our BUY on the stock. (BUY PT: €2)
• Since mid-March 2024 Visa, along with the Digital Payment space, has seen a relative underperformance compared to the S&P 500. We see this as an opportunity to add exposure to the stock. (BUY PT: $302)
• Ahead of DCC’s AGM next Thursday, where there is nothing contentious on the proxy form, we reiterate our Buy recommendation with an updated price target of £72.50, up from £71.00. (BUY PT: £72.50)