Archived IMT (2008.11.05)

Barack Obama becomes the 44th US president, giving the Democratic Party its first sweep of Congress and the White House since 1993-94, which prevailed during the first Clinton presidency. This week, financial markets will focus on Fridays US employment report, which could send the unemployment rate to its highest since 1994. In the midst of anticipated data deterioration, poor corporate earnings and gloomy guidance by CEOs, markets may be shored up by what is likely to be a high profile appointment to the Obama Treasury. Candidates include former Fed Chairman Paul Volcker, NY Fed president Tim Geithner or a figure with over-reaching connections to Wall Street. With the escalating fiscal challenges will remain a backdrop to any short term bounce in Wall Street, the demands for a supply-side stimulus are likely to dissipate, especially with the gains element having eroded. More post-election analysis ahead.