US President Donald J Trump is holding a press conference following the outcome of the Mid-Term Congressional Elections whereby the Democrats have taken the House of Representatives and the Republicans have kept their majority in the Senate. The immediate reaction in the markets was to sell the dollar:
DXY chart showing price action during the election results (DXY-0.37% currently):
However, in general, the impact on markets has been relatively modest as the outcome was widely expected. Leading into the presser, the DJIA was +1.04%, NASDAQ +1.74% and S&P 500 +1.26%. (US Stocks are still making a come back with a sigh of relief as these midterm elections results will not lead to the removal of President Trump through impeachment & conviction as markets had been concerned for).
We are now hearing what Trump has to say about the defeat in the House. What is key for markets is that domestic policy is made in Congress, of which now a Democratic majority in the House could be a stumbling block for Trump’s full domestic and international agenda.
“‹”‹”‹”‹”‹”‹”‹Key comments so far:
- Disadvantaged by hostile media coverage – setting new record and standard.
- Large wealthy Democrat donors influenced the outcome.
- We were bombarded with money on the other side.
- House retirements were also a cause.
- Campaigning stopped Blue Wave.
- The election marks largets Senate gins in first midterm since Pres Keneadies in 1962.
- Picked up three or four or maybe two Senate seats (Could be a lot).
- Obama lost 6 Senate seats by comparison.
- 27 House seats lost – Obama lost 67 by comparison.
- Republicans will control governmenships across the country by expanding the Senate majority.
- Cavanagh hearing was a factor.
Key notes:
- US: President Trump feeling blue – ING
- US Elections: Blue wave hits the house – Rabobank
About the Midterm elections:
The members of the United States Congress are elected for 4 years period usually 2 years after the presidential election. This year, 435 members to the US House of Representatives and 35 members to the US Senate. In addition, 39 states will elect Governors, while minor political charges will also be refreshed in local elections.
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