Asset management.

• The US mid-term elections have given the Democrats a majority in Congress and in several key states, which could limit Donald Trump’s agenda whilst preserving his powers in trade and foreign policy.

• The markets have reacted with a fall in government bond yields, a drop in oil prices and a rise in the price of gold back above $4,050 an ounce, against a backdrop of expectations of de-escalation in the Middle East and political deadlock in the United States.

• Post-election optimism, however, quickly faded: technology stocks and semiconductors triggered a sharp correction in US markets, despite generally solid economic indicators.

-  The Democratic surge has enabled the party to regain control of Congress, fuelled by voters’ frustration over inflation and Donald Trump’s policies.

-  Despite this victory, the President’s veto power and political tensions are likely to constrain the Democrats’ room for manoeuvre and slow the pace of reform.

-  Uncertainty surrounding data centre regulation could weigh on markets in the short term, but the economic outlook and seasonal trends remain favourable for equities.

• Mixed technological results have held back the market rally and triggered a correction on Nasdaq. However, corporate earnings remain broadly solid in the US and Europe.

• The Fed, the ECB and the Bank of Japan have kept their interest rates unchanged, whilst the US economy remains resilient. In Europe, economic indicators vary from country to country.

• Geopolitical uncertainties and rising energy prices remain risk factors.

• Risk assets declined amid concerns over technology and AI, as well as geopolitical tensions.

• Risk aversion supported government bonds, while PMIs confirmed the fragility of the European economy. In France, the OAT-Bund spread reached a record high of 172 basis points.

• Rising energy prices are increasing stagflation risks in Europe, while the price of gold fell by 3%.