Macro: Equity markets had a positive day yesterday with the S&P500 +0.9% and the Nasdaq +1.5%, as the market assessed the Iran-Israel conflict could be contained and deescalated through talks. Europe rose +0.4%. Economic releases today include the ZEW Expectations survey for Germany at 10:00 (35 est.), then at 13:30 we get May’s US Retail Sales (est. -0.6% MoM), Import Prices (-0.2% est.) and the NY Fed Services Business Activity index. Later at 14:15 May’s Industrial Production (est. 0.0% MoM) and Capacity Utilisation (est. 77.7%) data are released. Finally, at 15:00 Business Inventories (est. 0.0%) and NAHB Housing Market Index (est. 36) are announced. From the central bankers, we only have the ECB’s Villeroy and Centeno speaking. It’s also a busy week for central banks, with six of the ten most-traded currencies in the world set for rate decisions this week.

Stock: We have updates on TotalEnergies and AIB. (Comment attached)

Debt: Bond markets oscillated a bit yesterday but eventually yields ended more or less unchanged in Europe but slightly higher in the US

Opportunities this week:

• We reiterate our BUY rating on CRH, following the positive read-through from Martin Marietta’s Q1 earnings release last week.
• We are reiterating our BUY rating on Shell with an updated price target of £34, which provides 21% upside for investors.
• Following Alphabet’s Q1 positive earnings release, we upgraded the target price to $200 from $160, reiterating our BUY on the stock.