What did the markets take from the American elections? ▫ The victory of the Democrats in the mid-term elections in the USA and control of both houses of Congress changed the political equations of Washington and the expectations of investors. ▫ The first reaction of the financial markets to this result was the weakening of the dollar, an increase in the demand for treasury bonds and a decrease in the yield of 10-year bonds below 5%. In the stock market, S&P 500 and Nasdaq futures fell in initial reaction. ▫ But why should changing the political balance in Congress have such an impact on the markets? One of the most important reasons is the concern of investors about the financial situation of the American government. ▫ The state's debt in the amount of about 40 trillion dollars increased the fears of the budget deficit and more bond issuance. Now, Democratic control of Congress could make it harder to implement Trump's tax and spending plans and reduce pressure on the bond market. The link of this program on the device.

What did the markets take from the American elections? ▫ The victory of the Democrats in the mid-term elections in the USA and control of both houses of Congress changed the political equations of Washington and the expectations of investors. ▫ The first reaction of the financial markets to this result was the weakening of the dollar, an increase in the demand for treasury bonds and a decrease in the yield of 10-year bonds below 5%. In the stock market, S&P 500 and Nasdaq futures fell in initial reaction. ▫ But why should changing the political balance in Congress have such an impact on the markets? One of the most important reasons is the concern of investors about the financial situation of the American government. ▫ The state's debt in the amount of about 40 trillion dollars increased the fears of the budget deficit and more bond issuance. Now, Democratic control of Congress could make it harder to implement Trump's tax and spending plans and reduce pressure on the bond market. The link of this program on the device.