Financial markets were little changed last week, pausing for breath after the post-summer rally.
The FED meeting passed as expected (with the start of balance sheet normalisation) and economic data confirmed broad-based positive growth momentum.
In Europe, Angela Merkel secured a somewhat bittersweet victory to secure a fourth term as German chancellor, though with a lower than expected vote share and after a strong show of support for the right-wing Alternatives for Germany party. S&P downgraded China’s sovereign credit rating just a month ahead of the National Congress, though this was essentially a formality and largely ignored by markets.
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