The unprecedented ousting of Kevin McCarthy from the U.S. House speaker’s chair last week sparked a round of understandable anguish for investors and market analysts who saw yet more evidence of U.S. political dysfunction.
“We do not expect that this specific event will destabilize markets, but the dysfunction in Washington may add to eroding confidence in U.S. exceptionalism,” said Carl Ludwigson, managing director at Bel Air Investment Advisers, in a note. Investors will also be weighing the implications of Hamas’s surprise attack Saturday on Israel, which lifted oil prices and spurred a modest bid for haven-related assets, including the U.S. dollar and gold.The week ahead, however, also promises more political drama as divided House Republicans attempt to choose McCarthy’s successor. Given McCarthy’s fate, that successor is seen as less likely to reach across the aisle.
Also read: Wall Street worries U.S. could lose last AAA rating as political chaos fuels government-shutdown fears “It’s a problem and it’s a big problem, but it’s not a new problem, so it’s hard to link the meta issues that have been building for not months or years but really decades to the current market dynamic,” said Christopher Smart, founder and managing partner of Arbroath Group, a consulting firm.
But an implicit backdrop of political dysfunction “adds to the uncertainty that investors attribute to different economic data and probably makes these selloffs more extreme and volatile than they would have been with these less predictable political patterns,” he said.
Source: News Formal (newsformal.com)
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What America's political dysfunction means for the stock market and investorsWilliam Watts is MarketWatch markets editor. In addition to managing markets coverage, he writes about stocks, bonds, currencies and commodities, including oil. He also writes about global macro issues and trading strategies. During his time at MarketWatch, Watts has served in key roles in the Frankfurt, London, New York and Washington, D.C., newsrooms.
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Oil prices jump 3% after Hamas attack on IsraelWilliam Watts is MarketWatch markets editor. In addition to managing markets coverage, he writes about stocks, bonds, currencies and commodities, including oil. He also writes about global macro issues and trading strategies. During his time at MarketWatch, Watts has served in key roles in the Frankfurt, London, New York and Washington, D.C., newsrooms.
Source: MarketWatch - 🏆 3. / 97 Read more »
Oil prices jump 4% after Hamas attack on IsraelWilliam Watts is MarketWatch markets editor. In addition to managing markets coverage, he writes about stocks, bonds, currencies and commodities, including oil. He also writes about global macro issues and trading strategies. During his time at MarketWatch, Watts has served in key roles in the Frankfurt, London, New York and Washington, D.C., newsrooms.
Source: MarketWatch - 🏆 3. / 97 Read more »
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