Economics

The U.S. Replaces Europe as the Market's Political Problem Child

  • Euro-zone rebound is pleasant surprise for Eurasia analysts
  • Rising U.S. political risk to weigh on dollar versus euro

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Political instability, money problems and economic growth still top the list of threats to global markets. It’s just that the main players have swapped roles, according to Eurasia Group.

“For much of the post-crisis period, U.S. money, Chinese growth, and European politics have mattered most” to investors, New York-based director of global strategy at Eurasia, Karthik Sankaran, wrote in a research note this week. “But developments over the past year suggest that markets should be paying attention to U.S. politics, European growth, and Chinese money.”