How are global stock markets reacting to the US midterm election results?
Following the midterm elections where Democrats took control of both Congressional chambers, global stock markets felt the impact. Initial hesitation in European stocks soon gave way to strength, driven by financial sector gains. Precious metals e...
By Global Desk |
Reuters
A cameraman films TSMC stock prices at the Taiwan Stock Exchange in Taipei, Taiwan April 21, 2026.
Democrats have gained control of both chambers of the US Congress after the midterm elections, with President Donald Trump suffering one of the most embarrassing defeats of his political career. In the Senate, the Democrats won several seats that are traditionally considered long shots for the party, including Texas, Ohio, and Kansas. Here's how the election results are impacting stock markets around the world.
In Europe, stocks had a nervy start and later turned higher. The Euro Stoxx 50 was up by 0.8%, Germany's DAX up 0.6%, while Spain's IBEX 35 jumped 1.6%. US stock futures also recovered, with contracts on the S&P 500 up 0.2%.
Banks led the gains, with Deutsche Bank surging 3.6%, Intesa Sanpaolo 3.3%, while Santander and UniCredit rose 3%.
Clean energy companies, which had taken a hit due to Trump's policies, also saw surges. Danish wind farm developer Ørsted hiked 7.3%, while turbine maker Vestas rallied 5.2%.
But defense stocks took a southward turn, with investors fearing that a Democratic Congress could slow the growth in US military spending, favored by Trump: BAE Systems dropped 5.2%, Hensoldt 4.9%, Thales 4.5%, Saab 3.8%, Rheinmetall 3.2%, Dassault Aviation 2.8%, and Leonardo 2.7%.
Precious metals were seeing an upward trend. Gold rose 2.7% to go above $4,000 an ounce, while silver jumped 4% to $51.76.
Brent crude traded near $104 a barrel, while Bitcoin rose 1.3% to about $78,300. The euro surged 0.5% to $1.1247, as the US dollar weakened against other major currencies.
Markets usually like a situation such as the one created by the US midterm election. When the White House and the Congress are divided on their agendas, few major laws are passed. That essentially means fewer surprises for the markets
"We think that a Democratic sweep would be neutral to mildly positive for the fiscal outlook. Congress could restrain Trump's expansionary agenda and, with it, the deficit," Diego Barnuevo, a market analyst at the payments company Ebury, said, according to Euro News.
In Asia, trading remained volatile across markets. the Topix index, a Japan benchmark, fell nearly 1% after hitting its lowest intraday level in months. Taiwan’s stock index dipped 0.8% after also touching a three-month low.
Impact on European stocks
In Europe, stocks had a nervy start and later turned higher. The Euro Stoxx 50 was up by 0.8%, Germany's DAX up 0.6%, while Spain's IBEX 35 jumped 1.6%. US stock futures also recovered, with contracts on the S&P 500 up 0.2%.
Banks led the gains, with Deutsche Bank surging 3.6%, Intesa Sanpaolo 3.3%, while Santander and UniCredit rose 3%.
Clean energy companies, which had taken a hit due to Trump's policies, also saw surges. Danish wind farm developer Ørsted hiked 7.3%, while turbine maker Vestas rallied 5.2%.
But defense stocks took a southward turn, with investors fearing that a Democratic Congress could slow the growth in US military spending, favored by Trump: BAE Systems dropped 5.2%, Hensoldt 4.9%, Thales 4.5%, Saab 3.8%, Rheinmetall 3.2%, Dassault Aviation 2.8%, and Leonardo 2.7%.
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Precious markets and brent crude
Precious metals were seeing an upward trend. Gold rose 2.7% to go above $4,000 an ounce, while silver jumped 4% to $51.76.
Brent crude traded near $104 a barrel, while Bitcoin rose 1.3% to about $78,300. The euro surged 0.5% to $1.1247, as the US dollar weakened against other major currencies.
Markets usually like a situation such as the one created by the US midterm election. When the White House and the Congress are divided on their agendas, few major laws are passed. That essentially means fewer surprises for the markets
"We think that a Democratic sweep would be neutral to mildly positive for the fiscal outlook. Congress could restrain Trump's expansionary agenda and, with it, the deficit," Diego Barnuevo, a market analyst at the payments company Ebury, said, according to Euro News.
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Markets in Asia
In Asia, trading remained volatile across markets. the Topix index, a Japan benchmark, fell nearly 1% after hitting its lowest intraday level in months. Taiwan’s stock index dipped 0.8% after also touching a three-month low.
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