Nikko AM: Biden to win US election but global economic growth will 'disappoint'

Geopolitical issues remain a concern

Nikko AM has revealed it is still forecasting a victory for Democrat Joe Biden in the US Presidential election and has predicted that the global economy’s recovery will continue with a “disinflationary tenor”.

In its global investment committee outlook, chief global strategist John Vail set out that under a Democratic administration, the US Federal Reserve's "massive, multi-pronged" stimulus will increase further. Vail wrote: "Perhaps the question now is what will the Fed not do? We still do not expect negative rates, but there is some chance (especially if its bond market becomes unruly) that it will adopt yield curve control, pegging three-year maturities to about 0.3% in 2021, hoping, like Japan's case, for a gradually increasing yield curve in the longer part of the curve." Is Biden 'fo...