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Financial Markets Are ’Jittery’ Ahead of U.S. Vote, Zangana Says

Financial markets remain “jittery” ahead of the results of the U.S. presidential election, said Azad Zangana, a European economist at Schroders Investment Management.

Schroders is “looking beyond the immediate result of the election and more towards what the potential impact” on the U.S. economy will be from the winner of the vote, Zangana said at a conference in Lisbon today.

“The U.S. has been in denial for a couple of years now,” he said. “They have in fact been increasing stimulus into their economy not actually tightening fiscal policy, which of course will bring us to the fiscal cliff.”

Zangana said the near-term outlook for Europe still looks “very weak” and forecasts the euro area economy to contract a “little bit further” over the next six months as austerity measures continue to weigh on countries across the region.

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