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.

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