Global markets react as Democrats take control of US Congress

Global financial markets reacted with volatility following Democratic victories in the U.S. midterm elections, which granted the party control of Congress. U.S. stock index futures and the U.S. dollar declined, while safe-haven assets such as gold and U.S. Treasury bonds rallied. Analysts attributed the market shifts to expectations that a Democratic-led Congress will constrain President Donald Trump’s legislative agenda.

In contrast, European equities experienced gains. Major indexes across London, Frankfurt, Paris, and Milan rose significantly, led by strong performances in banking and clean energy shares. Conversely, defense sector stocks declined globally. Commentators noted that voter dissatisfaction over inflation and foreign conflicts played a key role in the election outcome, driving market adjustments to shifting fiscal and foreign policy expectations.

Sources: Bloomberg, Daily Sabah, Sweden Herald, The Guardian