• Equity Markets: Global equity markets responded strongly to last week's sell off, as optimism around the reopening of the US government increased. The S&P500 rose +1.5%, the Nasdaq climbed +2.2% whilst European stocks traded up +1.4%. In the US eight of eleven sectors were positive with 62% of companies in the green on the day. Information Technology (+2.7%) and Communication Services (+2.5%) were the strongest. Consumer Staples (-0.3%) and Real Estate (-0.1%) were the weakest. Palantir Technologies (+8.8%) was the strongest performer on the day as the wider AI and semiconductor industry rose +4.4%. After the closing bell, CoreWeave released its Q3 results, with sales beating estimates but missed on core margins and operating income. The stock is down -6.0% in premarket trading after increasing CAPEX spending for next year. In Europe nine of eleven sectors were positive with 79% of companies trading higher. Financials (+2.1%), and Consumer Discretionary (+1.7%) were the strongest. Real Estate (-0.2%) and Communication Services (-0.2%) were the weakest. Camurus AB (+12.1%) the Swedish healthcare research firm saw its shares rocket up (+14.6%) after reporting strong topline growth whilst Diageo (+5.2%) and Kingspan (+6.8%) also finished stronger with the former appointing a new CEO and the latter reporting solid Q3 results.       
• Macro: In macro news yesterday, it was a relatively quiet day for data releases with all attention on the potential reopening of the US government. On Sunday evening it was reported that eight moderate Democratic senators, would break from their party and vote in favour of a Republican bill, which does not include the extension of the Affordable Care Act (Obamacare) subsidies, a key sticking point which led to the initial and historically long 40 day shutdown. The bill would include a separate vote on health-care tax credits in the coming weeks and was voted in favour, on a 60-40 vote to pass. The bill must now pass the Republican controlled House before reaching President Trump’s desk to be signed off. House speaker Mike Johnson said he expects the bill to pass quickly.
• Stocks: Diageo: (Overweight TP £22.50, c.24% Upside): Commentary relating to the appointment of a new CEO Sir Dave Lewis Supermarket Income REIT: (Overweight TP 90p 11% Upside): Details relating to recent acquisitions. DCC: (Overweight PT £70.70, 48.8% Upside): Update relating to Q3 results released this morning. 
• Debt: Bond markets were under pressure at the off yesterday following the news on the impending shutdown resolution but rallied for most of the day to finish unchanged from Friday's closing levels.

Opportunities this week:

• On Friday, Fedex reported poor Q1 2025 results. On balance, the results show a tough start to the year, with revenue down 0.5% and adjusted EPS at $3.6 down 24.1%. Despite the poor Q1 results and slightly lower guidance, we reiterate our Buy rating on the stock with PT $330 (29.5% upside).
• In early August, PayPal launched Fastlane, a new accelerated guest checkout solution, for U.S. merchants, making it available on its Braintree and PPCP (PayPal Complete Payments) platforms, as well as through platform partners including Salesforce, Adobe, BigCommerce, and Bold Commerce. We reiterate our Buy recommendation with a PT of $95, (23% upside).
• Last month, along with lacklustre H1 earnings results, Datalex announced that it was proceeding with a Firm Placing (€17m) and Placing and Open Offer (€8m) to raise €25m to repay €15m of loans from an affiliate of its largest shareholder IIU nominees, and to provide sufficient short-term working capital for the business. The Board also announced that it planned to raise further equity capital in the first half of 2025, which they estimated to be a minimum of €5m additional. We recommend a Hold with a PT of 32c (-16% downside).