We expect a neutral opening of the European market amid mixed trading from -1% to + 1.2% of futures on world stock indices. Investors are preparing for re-election in the US Congress, and judging by the poll of representatives of the legislative power, Democrats may get more seats in the Lower House, while they will not be able to take the Senate. Some polls conducted by US television channels indicate a decrease in the number of seats for Democrats in these elections. Other polls promise them victory, because the Democratic Party has spent more money on election work than Republicans. This situation leads to uncertainty for investors, and they are biding their time. Therefore, they almost did not pay attention on Monday to good data on business activity in the US non-manufacturing industry. On the other hand, American investors are confident that the Senate will remain for the Republicans, and this will keep the easing of the financial part of the Dodd-Frank law, as well as the law on tax reform. After the elections, a significant event will be the FOMC meeting of the US Federal Reserve, from which they do not expect an increase in the rate, but the yield on 10-year government bonds rose to 3.2%, and the dollar index moves sideways. If the election results give a surprise, for example, the Democrats will take the Senate, then we can expect increased sanctions against Russia according to previously adopted laws, which the Republicans did not fully use.
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