Good morning,

 

Markets moved higher once again last week, as earnings from some of the mega cap tech companies helped late in the week. However, a stronger than expected non-farm payrolls release suggests that the ‘higher for longer’ narrative might have some road left to run. In a wide ranging ’60 Minutes’ interview Jerome Powell also stated it’s ‘not likely’ we’ll see a US rate cut in March. More info on both topics below.

 

In more local (or perhaps international?) news, there was an Irish interest at the NYSE on Monday as Flutter ‘rang the bell’ to celebrate it’s listing in New York. It follows materials giant CRH’s move in 2023, as companies exit both the Dublin and London markets in favour of a more attractive US listing. The theory states that US investors will stomach higher P/E multiples (and therefore each dollar of earnings should be worth more) and it is also the biggest passive market in the world (and therefore regular buyers of your stock if you become part of a widely invested index). It’s been a decent start for both companies in terms of share price, but this is of course in the context of the higher market we have experienced in the last few months. The companies themselves are also enjoying stock specific tailwinds and subsequent solid earnings (gambling deregulation and infrastructure spending respectively). Whether the recent spate of high-profile names relocating is the start or the end of a trend remains to be seen. For now, our ability to operate across markets, sectors, and exchanges leaves us well placed to continue to invest (or not) in such companies as our process dictates.

 

As always, if you wish to discuss anything in further detail, please do get in touch.