• Equity Markets:Global equities ended their recent rally yesterday as investors sold out of riskier corners of the market to start December on the back foot. The S&P500 slid -0.53%, the Nasdaq dropped -0.38% whilst European equities declined -0.20%. In the US three of eleven sectors were positive with 26.8% of companies higher on the day. Energy (+0.91%), and Information Technology (+0.07%) were the strongest sectors. Utilities (-2.35%) and Industrials (-1.49%) were the weakest. The healthcare giant Moderna, saw its share price fall -7.0% after the FDA announced stricter rules surrounding vaccine requirements in the US. Synopsys Inc was the strongest performer on the day, jumping 4.85% after it was announced that Nvidia would purchase $2bn worth of the company’s stock in a strategic partnership. In Europe five of eleven sectors were positive with 40.0% of companies moving higher on the day. Information Technology (+0.92%) and Consumer Discretionary (+0.72%) were the two strongest sectors. Industrials (-1.10%) and Real Estate (-0.93%) were the weakest. Big Yellow Group (-6.38%), the self-storage company had a particularly bad day after reports suggested Blackstone could potentially pull a bid to buy the company.
• Macro:In macro news yesterday US manufacturing PMI for November came in weaker than expected at 48.2 (est 49.0) whilst in France Manufacturing PMI was in line with estimates at 47.8. The same was true for Germany and the UK where PMI’s came in at 48.2 and 50.2 respectively. On the geopolitical side, tensions persist between China and Japan with the Taiwanese Foreign Minister stating that the dispute could drag on for over a year but was hopeful the two sides could reach a solution soon. The Trump administration reached a trade deal with the UK to allow tariff-free imports of pharma products in exchange for a significant reduction in rebates that drug makers pay to the NHS.In relation to macro news today, some key announcements coming from the US include October Final PPI demand with estimates of 0.2% MoM growth. Housing Starts (est 1330k) and New Home Sales (est 716k) for September will also be published. Eurozone preliminary CPI for November will also be released with expectations of -0.3%.
• Stocks: Kingspan: (Overweight, PT €84.70, +15% Upside): Update regarding the IPO of ADVNSYS.Ryanair (Overweight, PT €30.40, +8% Upside): Updated passenger numbers for November. Cairn Homes (Overweight, PT €2.46, +21% Upside): Update after last weeks meeting with the CEO and CFO. Core bond yields rose across the main markets yesterday after the BOJ gave their clearest sign yet that a rate hike was likely and a slightly stronger US Manufacturing PMI headline number added to the upward pressure on yields
• Debt: Core bond yields rose across the main markets yesterday after the BOJ gave their clearest sign yet that a rate hike was likely and a slightly stronger US Manufacturing PMI headline number added to the upward pressure on yields.

Opportunities this week:

• This morning PTSB issued its Q3 2024 trading statement, that showed total operating income for the first 9 months up 3% YoY. (BUY PT: €2.30)
• Despite the potential risk with the upcoming budget in the UK, we believe the investment case for Flutter will remain intact. (BUY PT: $275)
• Following a positive set of Q3 results from UPS last week, we are reiterating our Buy recommendation on its main peer, FedEx. (BUY PT:$330)