How will the US presidential election affect the
markets?
With US election day looming on 6 November, we look at the
likely impact of the election on the US economy and the
markets.
The economy will be a central issue in the forthcoming election
race between President Barack Obama and Republican nominee Mitt
Romney and is one of the key dividing lines between the
candidates.
Key issues
Broadly speaking, Obama believes in the power of big government,
while Romney thinks a smaller state empowers individuals. When it
comes to closing the deficit, this means that Obama favours tax
increases alongside spending cuts, whereas Romney believes in
deeper cuts and lower taxation.
Obama now owns the economic situation, and the election may be
determined, to a large extent, by how Americans feel about the
recovery on Election Day. Particularly important are the
unemployment rate and the price of gasoline, and more specifically
the direction these are travelling come
