Nick Watson: More conventional late-cycle US economy now in prospect

As broadly expected by politicians, polling agencies and markets, the US midterm elections this week saw the Republicans hold onto control in the Senate while the Democrats took control of the House. From a market perspective, president Donald Trump's ability to provide the US economy and markets with further levels of stimulus and acceleration are likely to be constrained over the next two years. His tax cuts and pro-cyclical fiscal expansion have certainly boosted economic activity and markets. The split between the Senate and House and the competing agendas of the Republicans and D...