US midterms and risk positioning
Markets brace for the midterms with polls showing a Democratic swing, while hedge funds cut leverage at the fastest pace since March and speculators bet against a December Fed hike.
What we know
FT says Wall Street braces for the vote. Polls show a ~9-point swing to Democrats. JPMorgan's midterm scenario sheet. Goldman: net leverage down 4.2 points to 73.4%. Speculators gun for no December hike.
How the story developed
Markets brace for the midterms with polls showing a Democratic swing, while hedge funds cut leverage at the fastest pace since March and speculators bet against a December Fed hike.
Equities and crypto are under pressure, and macro accounts compare the setup to October 2018 and 1929 ahead of the midterms, payrolls and a possible Fed hike.
By the Global Eye 24 desk, with AI assistance. Updated as the story develops. Spot an error? Write to corrections@globaleye24.com.