Wall Street is closely watching the US midterm Congressional elections next week, as policy decisions that could sway the economy, corporate decision-making and consumer spending hinge on the results.
Investors are bracing for a split Congress, in which Democrats win the House but Republicans hold the Senate, a reflection of current polling data and online betting markets.
Midterm congressional elections "typically are not a major US market event, let alone a global market event, but this time may be different," Citigroup analysts wrote in a recent note.
If the Republicans retain both the House and Senate the US dollar may benefit, analysts said.
The outlook for emerging markets is linked to US dollar strength and trade policy tensions. Emerging market assets will likely respond inversely to movements in the US dollar after the elections.