The markets are poised to stall

Rising expectations of a divided government following US midterm elections are supporting US equities as Asian markets stubbornly cling to hopes that China will ease its harsh restrictions on the pandemic.

Bank stocks could be in the spotlight in Europe on Tuesday after European Central Bank senior supervisor Andrea Enria said the ECB is scrutinizing eurozone banks’ payment plans as the outlook for the economies of the currency bloc of 19 nations are weakening.

Some of Europe’s largest banks recorded higher-than-expected profits in the last quarter, driven by a commercial boom in volatile markets and higher interest rates, but warned of the growing risks stemming from the economic downturn.

Meanwhile, as world leaders and diplomats called the fight against climate change a battle for human survival in the opening speeches of the COP27 summit in Egypt, the Telegraph newspaper reported that British Prime Minister Rishi Sunak is expected to announce a major deal on the natural gas with the United States after the summit.

EU finance ministers said measures to support eurozone economies against soaring energy prices could complicate fiscal plans for 2023 if extended in spring, noting the potential impact on rising energy prices. inflation already on the rise.

For global markets, the US mid-term elections will be the big event to watch.

Nonpartisan electoral meteorologists predict that Republicans are likely to get around 25 seats in the House of Representatives, which has 435, more than enough to secure a majority.

And analysts say Republicans could also get the seat they need to take control of the Senate.

While a conclusive result could take days, the focus will clearly be on former US President Donald Trump’s “big announcement” scheduled for November 15 after he hinted that he would organize a presidential run in 2024 next week.

Asian stocks rallied on Tuesday, buoyed by Wall Street gains and hopes of an eventual economic reopening in China.

Chart: US Election Closing Times 2022 –

Key Developments That Could Affect Markets On Tuesday:

Economic data: BRC retail sales in the UK,


Seven euro zone retail


Bank of England Chief Economist Huw Pill Participates in Debate on “Global Monetary Policy Challenges”

European results: Deutsche Post, Bayer, Pandora, Porsche



Walt Disney, Wynn Resort

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