Analysts at BBH explain that while markets are calmer than yesterday, nothing has been resolved as US political risks still remain in the headline.
“Yet impeachment talk is not only unfounded but not politically realistic, even if some Democrats are pushing it. First, Trump's support among Republicans remains high, according to recent polls. Second, the Republicans have a 45-seat majority in the House of Representatives, where a vote to impeach requires a simple majority. In the Senate, where the Republicans have 52 seats, only 35 votes would be necessary to block a conviction.”
“The more realistic threat is that the investigation into links with Russia distracts from the economic agenda, especially given the inexperienced team in the executive branch in terms of shepherding legislation through Congress. Investors are probably best served by monitoring progress on the economic agenda.”