Despite the US elections last week, the make-up of the government is largely the same as it has been for the last four years. Having been re-elected, Obama remains the president, whilst congress is still split between Republicans and Democrats.
This result suggests that the economic position that the nation adopts will be similar to that of Obama’s first term, contested. The looming issue that needs to be tackled in the market is an impending fiscal cliff, which is set to initiate by January 2013.
Analysts have already warned that should the expiry of tax cuts, tax raises and lower government spending all come into place, the American economy’s modest yet encouraging recovery could be plunged into recession.
Investor attention will be paid to any murmurings that reach the public over the week, whilst the US also has important retail sales data released on Wednesday
In Europe focus remains on Greece. Eurogroup meetings today will centre on Samaras’ most recent budget proposal, which sneaked through in a government vote by 153 out of 300. No immediate decision is expected, however the decision to make further cuts has been a positive step forward in securing the next tranche of bailout funds.
Today’s Key Announcements:
- All Day – EUR – Eurogroup Meetings
- All Day – USD – Veteran’s Day
See previous Daily Market Reports