Ahead of next week's US midterm elections, markets are taking a wait-and-see stance. With reports largely favoring the Democrats, attention is focused on the outlook for policymaking and AI-related stocks.
Ahead of the US midterm elections tomorrow, moves to reduce positions have become dominant. Markets are currently focused on the possibility that the balance of power in Congress could be disrupted, and risk aversion is spreading.
Many reports favor the Democrats in the House, and views are spreading that the election results could affect the administration's ability to govern. At the same time, expectations are growing for moves to contain extreme policy risks.
The market reaction after the midterm elections remains highly uncertain, while crude oil and a correction in AI-related stocks are leading developments. Markets are expected to remain in a wait-and-see mode as investors assess this week's economic data releases.
Upcoming economic indicators include PMIs from various countries and the US ISM manufacturing index. The United States' switch to winter time is also expected to affect release times.