Global markets rally on US midterm results; dollar down

US midterm elections led to split Congress

Markets across the globe recorded positive performance yesterday following the outcome of the US midterm elections, which led to a divided Congress, but concerns this would cause political gridlock in Washington weighed on the US dollar.

The results of the US midterm election came in as predicted by pollsters, with the Democrats winning the House of Representatives and the GOP strengthening its majority in the Senate. US midterms: Damp squib or another 'sugar rush' for US economy? Despite fears that political gridlock could stifle President Donald Trump's pro-market agenda, analysts do not expect a reversal of cornerstone policies like tax cuts and financial deregulation measures, which have already been enacted. Meanwhile, many commentators expect the stronger influence of the Democrats to help push through increa...