• Macro: Equity markets were mostly stronger yesterday, with both the S&P500 and the Nasdaq posting gains, whilst the Eurostoxx600 was marginally lower. Tesla led the gains in large-cap tech on reports that a federal framework for fully self-driving vehicles would be a priority for the Transportation Department under Trump. From an economic perspective later today, we will have housing starts and building permits data out of the US at 13:30. In terms of central bank speakers, we have Elderson, Muller and Panetta from the ECB, and Schmid from the Fed.
• Stock: We have updates on Nestle’s short-term guidance and medium-term outlook along with Supermarket Income REIT’s acquisition of a Sainsbury Supermarket. (Comment attached)
• Debt: Core bond yields were little changed yesterday in a day of light economic data.

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.