Buoyant markets brush off U.S. government shutdown fears

Market Overview - Equity markets in Europe and the US are reaching record highs, with investors dismissing concerns over the US government shutdown [2][4] - The Dow has seen a modest increase of about 0.6%, while the S&P 500 and NASDAQ have also shown positive trends, with the NASDAQ up 1.6% [4][22] - The technology sector continues to be a significant driver of market performance, particularly due to the ongoing AI narrative [4][28] Sector Performance - Cyclical stocks, including industrials, materials, and financials, are experiencing strong demand, while defensive sectors like healthcare and consumer staples are underperforming [6] - Pharmaceutical stocks have shown resilience despite tariff-related challenges, with companies like Pfizer benefiting from recent agreements [4] - The energy sector has underperformed, declining by about 1%, while materials have been the best performers, increasing by approximately 1% [23] Investment Trends - There is a notable divide in performance between multinationals and domestic companies, with multinationals benefiting from a weak dollar, which enhances their revenue from foreign sales [4][14] - Value stocks have underperformed compared to growth stocks over the past six months, presenting potential opportunities for long-term value investors [7] - Investors are increasingly focused on the AI sector, with significant interest in companies that are leveraging AI technologies for growth [28][48] Company-Specific Developments - Tesla shares have reversed despite reporting record deliveries in Q3, as investors are concerned about the implications of expiring EV tax credits [3][50] - LRAN, a French electrical and digital infrastructure firm, is acquiring US company Avron Power Solutions for $1.13 billion, aiming to strengthen its position in energy transition solutions [51][52] - LRAN anticipates that its data center business will grow significantly, projecting it to account for 25% of sales by 2025, with an organic growth rate of 20-25% [62][66]