• Macro: It was another mixed day for equity markets yesterday, with Europe down, whilst in the US, both the S&P 500 and the Nasdaq finished the day higher as markets reacted to Powell’s testimony to the Senate banking committee. From an economic standpoint, today is another quiet day with weekly Mortgage Application data (@12:00) and Wholesale Trade Sales and Inventories @15:00. From the Fed later today, we will have further testimony from Powell to the House Financial Services committee where it would be surprising if he added much to his comments from yesterday. In Europe, the ECB’s Nagel will speak at 9am and the BOE’s Pill and Mann will be talking later in the afternoon.
• Stock: We have provided updates on Volkswagen and Grafton Group where they issued a profit warning and a trading statement respectively.
• Debt: Core bond yields moved moderately higher following Powell’s first day of testimony.

Opportunities this week:

• We have added Cairn Homes to our Analyst Conviction List and increased our price target to €2 from €1.75 reiterating our BUY rating on the stock.
• We are reiterating our BUY rating on Ryanair following a recent sell off in the stock. Which presents an opportunity for investors to add exposure to the stock at a very attractive entry point.
• We are reiterating our BUY rating on FBD Holdings with an unchanged price target of €16, which provides 22% upside.