Today, the center of attention is on the US midterm elections. Economists at Danske Bank do no longer count on the election end result to be a most important market mover in the near-term.
US midterm elections today
“Republicans are favoured to win manage of each House and Senate, though the Senate race stays a shut call.”
“If republicans win the Senate by using a slim margin or if Democrats are capable to hold the Senate, market response ought to be pretty muted, as main adjustments in fiscal coverage would be tough to pass.”
“The (modest) risk-scenario for markets would be a clear victory for Republicans additionally in the Senate, as this may want to make bigger the threat of extra expansionary (and inflationary) fiscal insurance policies amid the looming recession.”