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...