Macro: Equity markets had a mixed day yesterday with the S&P500 +0.38% and the Nasdaq +0.24%, as, despite a solid 30-year treasury auction, geopolitical tension rose again as news outlets reported that Israel was considering military strikes on Iran, which subsequently happened overnight. Europe was weaker, declining -0.33%. Economic releases today include the UK’s BOE/IPSOS Next 12 Month inflation survey in April, the EU’s trade balance and EU Industrial Production. Over in the US, the only item out is the June University of Michigan’s Sentiment index at 15:00 (est. 53.6 and 52.2 prev.) It is all quiet on the central bankers’ front on Friday.

Stock: We have an update on GSK. (Comment attached)

Debt: US Bonds rallied on a successful $22bn 30-year US Treasury auction, and as unemployment and PPI data were weaker than expected

Opportunities this week:

• Despite the recent downward correction seen in GSK’s shares, we view it as a fundamentally solid healthcare business with a strong franchise, as such, we reiterate our BUY rating on the stock. (BUY PT: 1890p)
• Given the selloff in Kingspan’s shares over the last month (-10% in June) and the possibility the company’s H1 guidance may prove overly conservative, we believe it is an opportune time to highlight the stock as a buying opportunity. (BUY PT: €94.10)
• In our view, the recent pullback in Glanbia’s shares appears unwarranted, providing an attractive entry point for investors. (BUY PT €21.50)