What’s in Today’s Report:
- Election Takeaways (Short and Longer Term Implications)
- FOMC Preview – All About the Fed Put
- A Seasonal Pattern That’s Worked 100% of the Time
Futures are modestly higher on a relief rally as the U.S. mid-term elections provided no surprises.
As was widely expected, Democrats gained a small majority in the House of Representatives, while the Republicans expanded their majority in the Senate.
Economically, data from Europe was good as German Industrial Production (0.2% vs. (E) -0.1%) and Euro Zone Retail Sales (0.1% vs. (E) 0.0%) both beat estimates.
Today focus will be on the FOMC Decision (2:00 p.m. EST, E: No Change to Rates) and the key will be whether the Fed mentions recent stock market volatility. If they do, that will be taken as a slightly dovish shift, and it likely will help extend today’s early rally.