Market Daily

Equity Market Updates

Apple (AAPL US)

Apple will reportedly not release the next version of its iPhone Air in the fall of 2026, as previously planned, amid weak sales.

The company launched the iPhone Air in 2025 as a thinner and lighter alternative within its flagship iPhone portfolio. The model, with a slim design, came with some trade-offs in terms of battery size and camera features.

Further developments surrounding this topic, along with its potential impact to Apple’s top- and bottom-line, will likely be closely watched by the market going forward.

MARKET CONSENSUS: 39 BUYS, 18 HOLDS, 4 SELLS, AVERAGE TP USD284.51

Eli Lilly (LLY US)

US pharmaceutical giant Eli Lilly and MeiraGTx Holdings signed a deal on Monday, potentially worth over USD475mln, granting the pharma giant rights to its experimental gene therapy for a rare, inherited disorder that causes severe vision loss from birth.

Under the deal, MeiraGTx will get an upfront payment of USD75mln and potentially over USD400mln more in milestone payments. MeiraGTx is also eligible to receive tiered royalties on licensed products.

This marks Eli Lilly's latest effort to tap the market for eye treatments and bolster its focus on gene therapies, after signing a deal valued at up to USD261.7mln to buy gene therapy developer Adverum Biotechnologies in October.

The market will closely watch how this deal with MeiraGTx will impact Eli Lilly’s financial performance in the medium to long term.

MARKET CONSENSUS: 28 BUYS, 8 HOLDS, 1 SELL, AVERAGE TP USD976.04

Diageo (DGE LN)

Diageo has appointed Dave Lewis as its CEO on Monday, ending a months-long search and turning to an outsider to steer the world's largest spirits maker through a challenging period for the drinks industry.

The UK company behind Johnnie Walker whisky, Guinness beer and Baileys Irish Cream liqueur said that Lewis would take over the position from interim CEO Nik Jhangiani on 1 January 2026, and would be tasked with turning around the company, which last week downgraded its sales and profit outlook for FY26 and whose shares are hovering near a decade low. Jhangiani will then resume as chief financial officer.

Lewis previously served as group CEO of UK grocer Tesco from 2014 to 2020, and previously spent almost three decades at Unilever. He was knighted by Queen Elizabeth II in the 2021 New Year's Honours List for his contributions to business and the food industry in the UK.

MARKET CONSENSUS: 15 BUYS, 8 HOLDS, 3 SELLS, AVERAGE TP GBp2247

TSMC (2330 TT)

TSMC reported slowing growth in monthly revenue on Monday, highlighting uncertainty over the sustainability of the AI boom even as industry giants including Nvidia chase more chip orders.

The company posted a 16.9% rise in sales for October, the slowest pace since February 2024. Still, TSMC shares have gained about 37% since the beginning of this year.

Investors were jolted last week by a sudden slump in Asia’s technology shares, which served as a stark reminder that the world-beating rally in AI and semiconductor stocks may be nearing a short-term crest.

Last month, TSMC again raised its full-year revenue outlook as profit for 3Q25 soared to a record high. The company's chairman, C.C. Wei, said production capacity remains tight and the company is working hard to meet demand.

MARKET CONSENSUS: 42 BUYS, 1 HOLD, AVERAGE TP TWD1777.06

Grab Holdings (GRAB US)

Singaporean technology giant Grab announced on Monday that it will invest USD60mln in remote driving firm Vay Technology. Vay relies on "teledrivers" to steer its cars to a potential customer, who can then self-drive the vehicle.

Grab is trying to leverage its ride-hailing platform to tap into autonomous vehicles, which are largely seen as the future of mobility and a potential disruptive force for companies such as Grab and Uber.

If Vay hits certain milestones, Grab said it would invest USD350mln more within the first year. The milestones include consumer revenue, US cities covered, technology and safety standards, and regulatory approvals for operating in additional US cities.

MARKET CONSENSUS: 25 BUYS, 4 HOLDS, AVERAGE TP USD6.84

Earnings Announcements

Global Indices Changes (%)

Fixed Income Market Updates

European Bank Coco (AT1)

European AT1 bonds opened strongly this morning, building on last week’s positive momentum and tracking equity market movements rather than government bonds like treasuries or bunds. Prices rose by about 30 cents, with new deals outperforming, climbing as much as 0.5 to 0.625 points higher as short sellers were squeezed. Despite the gains, some investors remain cautious, reluctant to chase the higher levels. Looking ahead, the market could see further tightening if equity markets continue their rally, though upcoming data releases may introduce volatility.

Asia Investment Grade (IG)
Asian IG bonds traded slightly tighter, with spreads narrowing by 1 to 3 basis points in general. Demand was selective, with interest seen in names such as Philadelphia Corporation, KNBZMK, and PTT Global Chemical perpetual bonds. In China, investment-grade credits saw limited activity, with spreads mostly 1 basis point tighter, while BBB-rated names like Haohua and Sinopec widened slightly. Japan IG rebounded strongly after underperforming last week, with spreads tightening by 1 to 5 basis points and cash prices rising. Looking ahead, market participants may remain cautious as they monitor U.S. government developments and corporate earnings from major Chinese companies like Alibaba and Tencent.

Asia High Yield (HY)

Asian HY bonds started the week on a stable note, with most names unchanged or slightly higher. In China, New World Development gained 1 point as hedge funds and street accounts added positions, while broader property sector names traded quietly. Outside China, HY bonds in Southeast Asia saw modest gains, with renewable energy and long-dated papers attracting demand. Indian names like Vedanta Limited rose by 0.25 points on buying interest. However, Macau and Indonesia long-end bonds experienced slight pressure due to movements in U.S. Treasury yields. As sentiment improves, selective buying in HY credits could continue, but caution remains ahead of key macroeconomic data releases.

Forex Market Updates

USD

The US Dollar Index posted slight gains, closing at 99.62 on Monday as sentiment improved following the US Senate’s approval of a measure to reopen the federal government and was supported by several Democratic lawmakers. The move sparked hopes that the government shutdown which has stretched to more than 40 days would end soon, offering some support to the Greenback. Meanwhile, Fed officials Musalem and Daly spoke yesterday, citing the economy’s resilience despite inflationary risks. Last week, the survey from the University of Michigan pointed to softer consumer confidence whilst labor market data showed a notable rise in job cuts due to cost-cutting measures and AI-driven transformation.

The Dollar Index may see some consolidation between 98.57 and 100.36 moving forward. 

GBP

The British Pound traded slightly higher yesterday, closing at 1.3173 as optimism over a possible end to the US government shutdown kept the US dollar supported. Meanwhile, the Bank of England held rates steady at 4.0% in a dovish 5-4 vote split with Governor Bailey hinting at possible cuts ahead. Attention now turns to the UK job claims later today, the GDP data on Thursday as well as the November budget, where Finance Minister Reeves is expected to raise taxes to plug a 22bn fiscal shortfall. 

Sterling bulls could target a push towards immediate resistance around 1.3200 ahead of Tuesday’s key UK employment data.

AUD    

The Australian Dollar strengthened yesterday to 0.6534, following hawkish remarks from RBA Governor Andrew Hauser.  During a conference in Sydney, Hauser emphasised that monetary policy must remain restrictive enough to “close the output gap,” noting that the economy continues to “run above its potential,” leaving limited scope for near-term rate cuts. The macroeconomic data supports his stance as Australia’s inflation accelerated to 1.3% in the third quarter from 0.7% previously, underscoring persistent price pressures.  Furthermore, a positive upturn in China’s economy, Australia’s largest trading partner also serves as a tailwind for the Aussie. China’s CPI rose 0.2% yoy after a 0.3% reduction in September, while PPI contraction moderated to 2.1%, pointing to a gradual recovery in domestic demand. Further easing in US-China tensions have also boosted sentiment for the Aussie. 

We see more upside possible for the Aussie in the near term, and it may stretch towards the 0.6600 level.

XAU

Gold prices surged over 2.5% on Monday, reaching $4,115 , despite smaller bets on potential Fed Reserve rate cut in December and the US Senate’s approval of a funding bill which would hasten an end to the government shutdown. Gold continues to see strong demand, in October, the World Gold Council reported that global gold ETFs saw inflows of up to 54.9 tonnes, a fifth consecutive month of gains.  Meanwhile, bets on a December rate cut have been slightly reduced, with markets pricing in around a 61% chance instead of 66.8% a week earlier, following Fed Chair Powell’s hawkish tone in the October meeting. If the Fed does not cut in the next meeting, it may cap further gains for the precious metal.

The precious metal may see some consolidation between $3,800 and $4,200 for the time being.

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