• Macro: Equity markets had a mixed session to cap-off September yesterday, as the Eurostoxx600 moved modestly lower, whilst the S&P500 and the Nasdaq were both up slightly, marking the fourth consecutive month of gains in the S&P500, its best run since 2021. From an economic perspective today, data from the Euro-Area is likely to show that headline inflation fell below the ECB’s 2% target for the first time since 2021 in September, providing further support for a rate cut in October. We will also have manufacturing PMI releases out of the Eurozone, France, Germany, the UK and the US.
• Stock: We have updates on Roche following its updated growth ambitions. (BUY PT: CHF295).
• Debt: European bond yields were little changed yesterday on positive inflation data and dovish Central Bank commentary.

Opportunities this week:

• We are reiterating our BUY rating on Deere as we believe that near-term consensus earnings estimates for the company are too conservative and that the long-term tailwinds for the business are not reflected in its discounted valuation.
• Last week, we issued an updated research note on Grafton Group, reiterating our BUY rating with an unchanged price target of £11.50, which provides 24% for investors.
• Following the stock’s poor performance last week (-5.4%) and ahead of its Q3 numbers that will be released on 25th April (Thursday) we are highlighting our Buy recommendation on Microsoft.