BBH: 'Split Congress Is The Favored Outcome For Markets'
Polls suggest Congress may be split after Tuesday’s midterm elections, but then a “split Congress is the favored outcome for markets,” says Brown Brothers Harriman. Analysts note that the popular 538 Website shows Democrats have a six in seven (85.2%) chance of winning control of the House of Representatives, while Republicans have a five in six (84.2%) chance of keeping the Senate. “A split congress seems to be the base case that markets are working with right now,” BBH says. The firm later adds, “That said, we think a split Congress is the favored outcome for markets. In some ways, the economic status quo would continue (tax cuts are retained) but having one Democratic chamber would allow for some checks and balances on the executive branch. The Fed will feel comfortable continuing the tightening cycle, while another round of tax cuts becomes more unlikely.”
By Allen Sykora of Kitco News; email@example.com
Commerzbank: Platinum Hits Four Month High, Boosted By Short Covering
Monday November 05, 2018 08:25
Spot platinum topped $870 an ounce early Monday, its strongest level since the end of June. “Much as with copper, we attribute this to short covering, as the CFTC’s [Commodity Futures Trading Commission’s] statistics show that net-short positions have meanwhile been almost entirely reduced,” Commerzbank says. “No role in this was played by the fact that the German Association of the Automotive Industry posted a significant decline in passenger-car sales for Germany in October, or that the proportion of diesel cars has decreased further.” The CFTC data show that the net-short position of money managers has been reduced to just 1,685 lots.