A house divided: US election result weighs on longer-term outlook

The prospect of a split US government buoyed equity markets heading into the end of US election week with investors encouraged by the softening risk of higher taxation under a Joe Biden Presidency, but concerns of an obstructed political process weigh on prospects for growth over the next four years. Global equity markets rallied from the day of the US elections (3 November) through to the end of the week as the likely result became clearer, with the S&P 100, S&P 500 and MSCI World up 4.4%, 3.6% and 3.7% respectively, according to FE fundinfo data. Healthcare and technology led the ga...