In the news this week

Author: Amélie Labbé | Published: 9 Nov 2018

Americas: living on a prayer

Everyone and everything took a pause this week as the world cast its eyes on the US. The most hotly anticipated, and strategically important, midterm elections in living memory took place on Tuesday, with the Democratic party securing victory in the House of Representatives but failing to flip the balance in the Senate. Party politics aside, the change in the House is unlikely to have too big an impact on the financial services sector, largely the economic policies of the Republican party have already progressed to the Senate.

Following the news, which ensured that there will be fewer drastic policy changes for at least two years, the market rallied on the promise of stability, as they often do in a split Congress. The stock market soared across the world, bond fund activity rose. The Federal Reserve decided that holding interest rates steady at this point was...