In the upcoming US Midterm elections on November 6, there are high expectations of divided Congress, with the Democratic Party taking control of the House of Representatives and the Grand Old Party (GOP) retaining control of the Senate.
Director of currency strategy, US portfolio manager
The robust performance of the US economy in 2018 has led to the supremacy of US risk assets compared to the rest of the world. Moving towards the end of the year and into 2019, global investors have started to raise questions about whether the US economy and business sector will continue to shine, how inflation will evolve, and which direction the Federal Reserve will take going forward.
Claudia BERTINO, Laura FIOROT, Kenneth J. TAUBES, Didier BOROWSKI, Annalisa USARDI, Valentine AINOUZ, Sergio BERTONCINI, Eric MIJOT, Marco PIRONDINI
Brexit, volatility/financial stability, negative rates/cost of capital for banks, deglobalisation, and the US elections are key drivers of the current market environment and asset allocation considerations. They remind us, in case we needed to be, that we shouldn’t lower our guard just because of the “aggressive” role that central banks are playing on thefinancial markets.
Global Head of Research