Markets entered a bout of volatility after the Democratic sweep of Congress in the US midterm elections, and uncertainty about what it means for the AI trade and the buildout of data centres is a part of that, says Christian Nolting, the Private Bank’s Global Chief Investment Officer. “We saw quite a bit of rotation,” Christian says.
Much of the political upheaval has been attributed to voter anger around the cost of living, particularly fuel costs, and Christian says he doesn’t expect those prices to moderate soon. “We do forecast energy prices to stay high for quite some time, but we do not forecast that we go substantially higher again from here.”
US inflation figures are due in the week ahead, as well as third-quarter GDP in the eurozone – but the tremors in markets after the election are likely to remain in the spotlight, Christian says. “The focus at this point in time is the next step for the central banks, and also how is the AI trade doing this week.”
