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 BrownBrothers Harriman. Analysts note that the popular 538 Website shows Democrats have a sixin 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 withright now,” BBH says. The firm later adds, “That said, we think a split Congress is the favored outcome for markets. Insome ways, the economic status quo would continue (tax cuts are retained) buthaving one Democratic chamber would allow for some checks and balances on theexecutive branch. The Fed will feel comfortable continuing the tighteningcycle, while another round of tax cuts becomes more unlikely.”
By Allen Sykoraof Kitco News; asykora@kitco.com
Commerzbank: Platinum Hits Four MonthHigh, Boosted By Short Covering
Monday November 05, 2018 08:25
Spot platinum topped $870 an ounce early Monday, itsstrongest level since the end of June. “Much as with copper, we attribute thisto short covering, as the CFTC’s [Commodity Futures Trading Commission’s]statistics show that net-short positions have meanwhile been almost entirelyreduced,” Commerzbank says. “No role in this was played by the fact that theGerman Association of the Automotive Industry posted a significant decline inpassenger-car sales for Germany in October, or that the proportion of dieselcars has decreased further.” The CFTC data show that the net-short position ofmoney managers has been reduced to just 1,685 lots.
By Allen SykoraFor Kitco News
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