• Equity Markets: Equity markets a had positive day yesterday with the S&P500 +0.37% and the Nasdaq +0.65%, rebounding following Tuesday’s weakness. Europe was +0.23%. In the US, eight sectors were in positive territory and 61% of stocks ended higher. Communication Services and Consumer Discretionary were best. Consumer Staples and Information Technology were weakest. Though the SOX semiconductor index rose 3.02% after falling 4.01% the day before. Apple is to use Google Gemini AI models to run Siri for a reported $1bn per year payment. In Europe, seven of eleven sectors were in positive territory, with Consumer Discretionary and Materials best, whilst Healthcare and Information Technology were worst. Vestas was up 14.8% on strong orders and a €150m buyback plan. BMW jumped 6.8% on new EV demand and cost cutting.
• Macro: In macro news yesterday, in Europe, French Industrial Production and Manufacturing Production beat estimates rising 1.3% and 1.5% YoY respectively. For October the French, German, UK and Eurozone Services and Composite PMIs all beat expectations and improved marginally from the preliminary release. The Eurozone’s September PPI fell by -0.2% YoY as expected, which was an improvement on the -0.6% recorded last month. Ireland’s unemployment rate slipped back to 5% in October from 5.1% in September. This morning in Germany, September Industrial Production improved to -1.0% YoY from -3.6% previously, but missed estimates of +0.1%. In the US, the Services and Composite PMIs came in below estimates (54.8 and 54.6 versus 55.2 and 54.9 estimates), both improved on the previous month. MBA Mortgage Applications fell 1.9% on the week to Oct 31st.Economic releases today in Europe include German Industrial Production (Sep) and Construction PMI (Oct), UK Construction PMI (Oct), and EU Retail Sales (Sep). Whilst in the US the following are scheduled (subject to Fed Government shutdown): Challenger Job Cuts (Oct), Nonfarm Productivity (3Q P), Initial Jobless Claims, Continuing Claims and Wholesale Inventories (Sep F) 
• Stock: CRH: (Overweight PT £102.80, c.15% Upside): Commentary on solid Q3 results. Diageo: (Overweight. £22.50 c.25% Upside): Details on muted Q1 2026 results and a revised lower PT of £22.50 from £23.70.
• Debt: Bond yields rose yesterday as the US ISM Index and Composite PMI data in Europe improved.

Opportunities this week:

• Cairn last week provided an upbeat trading statement for its first half of the year, we retain our Overweight rating on the stock and our target price to €2.41 (c. 11% upside).
• Following a busy week of low-key announcements and given uncertainties in the pharmaceuticals sector, we are revising our price target on GSK from 2010p to 1820p.
• Last week Kingspan shares traded slightly higher to €71.95 (+1.48%) despite negative market news related to the Grenfell Tower Investigation. We reiterate our overweight recommendation and target price of €88.00.