Upcoming elections and possible impact on markets

China, US and Europe

Between now and the end of the year there are a number of national and intra-party elections that have the potential to heavily shape the economic and market outlook in 2023.

The mid-term elections in the US will determine whether the Democrats continue to hold power in both houses of Congress. Unified government has allowed the Biden administration to pass important legislation - including the recent climate-focused Inflation Reduction Act - in spite of Republican opposition. The rally in stocks benefiting from the clean energy provisions in the Act demonstrates just how important legislative action can be in influencing markets. A Republican victory in either house would stall further legislative change until at least after the presidential elections in Nov...