(CercleFinance.com) – The New York Stock Exchange is trading on relatively tight scores on Monday, investors seeming very risk averse while waiting for the midterm elections.
At the end of the morning, the Dow Jones index gained 0.7% to 32,640.7 points, while the Nasdaq Composite rose more moderately, barely 0.2% to 10,490.9 points.
Despite the appearance of a slight buying current this morning following the losses of the past week, investors prefer not to commit too much before knowing the results of the election.
Recent polls suggest that Democrats, undermined by soaring inflation in the country, could lose their majority in the House of Representatives.
Investors know that a divided Congress would reduce the chances of a significant fiscal boost should the US economy take a hit.
This situation would also risk reviving the age-old quarrels between the two parties concerning the raising of the debt ceiling.
All in all, however, it seems unlikely that the midterm elections will have a significant impact on US equity markets.
“Investors obviously tend to prefer a balance of power in government, so a divided Congress might be slightly more positive,” said Kristina Hooper, strategist at Invesco.
Market sentiment is also still affected by the warning from Apple, which lost 1.1% after warning that its production capacity for the iPhone would be affected by the serious confinements in China.
Note the continued rise in the euro, which is flirting with parity against the dollar (+0.4% to 0.9980) while the flattest calm reigns over bonds, with T-Bonds posting an increase symbolic of three basis points to 4.19%.
Economic news is empty on Monday and the main quantified meeting of the week will be set for Thursday, with the publication of inflation in the United States.
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