Daily Note Archives

Equity Markets: Global equities started the week on the back foot as lingering concerns around tech valuations persist heading into Nvidia’s Q3 results (19th Nov) and key US jobs data (20th Nov). The S&P500 dropped -0.9%, the Nasdaq fell -0.8%, both closing below key technical indicators, whilst European finished -0.5% lower. In the US two of eleven sectors were positive with 18.5% of stocks finishing higher on the day. Communication Services (+1.13%) and Utilities (+0.84%) were the strongest sectors. Financials (-1.93%) and Energy (-1.88%) were the weakest. Alphabet shares jumped (+3.1%) throughout trading as it was confirmed that Berkshire Hathaway had increased its stake in the company, purchasing 17.85m ($4.93bn) shares recently. Dell shares dropped (-8.4%), continuing its recent decline, after analysts at Morgan Stanley downgraded their rating on the company. In Europe four of eleven sectors were positive with 23% of stocks higher on the day. Utilities (+0.62%) and Energy (+0.23%) were the strongest sectors. Consumer Discretionary (-1.60%) and Financials (-0.98%) were the weakest. WPP Plc shares climbed (+11.0%), the highest in five years after the communications company became the subject of a potential takeover bid, as reported by the Sunday Times. In luxury, Burberry Group shares slumped (-6.6%) as tensions in Asia, between China and Japan is cautioning investors sentiment around consumer travel and spending in both regions.

Macro: In macro news yesterday the US Empire Manufacturing Index came in stronger then expected at 18.7 (est 5.8) for the month of November. Additionally, US construction spending for August was up 0.2% beating estimates by 0.3%. The Fed’s Christopher Waller acknowledged and supported a further rate cut in December, citing a weak labour market and a current monetary policy, coupled with tariffs, that is hurting low-and middle-income consumers. In macro news today focus will stay on the US with the release of August Durable Goods (est 2.9%), Factory Orders (est 1.4%), and the ADP Weekly Employment statistics.

Stocks: DCC: (Overweight TP £70.70, c.42% Upside): Details relating to share buyback program through Tender Offer. Novo Nordisk: (Overweight TP DKK474, c.53% Upside): Commentary relating to price reductions on key GLP-1 weight loss medication. PayPal (Overweight TP $97 c.48% Upside): short note on renewed BNPL partnership with KKR.

Debt: Bond markets stabilised yesterday following Friday’s selloff, despite the stronger Empire State Manufacturing survey, and have rallied since the European close on weaker risk sentiment.