Weekly Macro & Markets View

What were the key global economic data releases, what is Zurich’s view and what does this mean for financial assets?

Weekly Macro and Markets View, Week 46

Democrats flip seven Republican-held Senate seats, winning control of both the Senate and the House
The outcome was a surprise in scale rather than the result itself, and was indicative of an electorate exasperated by the cost-of-living crisis.
Equity market volatility spikes on tech fears following the US mid-term elections
Stocks initially rallied as the decisive outcome removed market uncertainty, but potentially more regulation for AI development unsettled investors.
Credit markets remain resilient despite the jitters seen in stock markets last week
Credit markets appear to be signalling that the equity sell off is likely to be more technical, possibly driven by an unwind of leveraged positions, rather than being fundamental in nature.