“I think the Comey news led to an initial surprise but the rebound was equally swift,” Liz Ann Sonders, chief investment strategist at Charles Schwab & Co, told Reuters. “I’m not sure that unless Comey says something completely shocking or he suggests something that there’s no way the House can’t consider obstruction of justice … aside from that I don’t see his testimony as market moving.”
Additionally, early results for the United Kingdom general election will start coming in Thursday, with the latest polls indicating a tighter-than-expected race.
“If the Conservative party extends its majority, markets will be pretty calm, but anything less than that is going to have people worried about how we approach the Brexit negotiation,” Luke Hickmore, senior investment manager at Aberdeen Asset Management, told Reuters.
Nevertheless, many argue that signs of improvement in the global economy and corporate earnings will maintain market momentum and more than offset potential uncertain events ahead.
“As long as earnings are strong and the economic backdrop good, I’m still cautiously optimistic,” Susan Bao, portfolio manager at J.P. Morgan Asset Management, told the WSJ.
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