A changing of the guard ...

Political change appears to be intensifying around the globe and this will only heighten the uncertainty for financial markets. In the US the Democrat mid-term election gains could curtail President Trump’s legislative agenda with the risk that he steps up his attacks on trade partners. The Italian fiscal saga continues with the government at loggerheads with the EU while Angela Merkel calling time on her German Chancellorship could create a political vacuum at the heart of Europe. Meanwhile the growing prevalence of “strongman” leaders in emerging markets is likely to be another factor that will stoke geopolitical tensions and potentially lead to even greater market volatility.

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