Global stock markets erased a selloff sparked by a Democratic sweep of the US Congress, as uncertainty surrounding the midterms faded and dip-buyers rushed back into a bruised market.
Equities reversed earlier losses, trading firmly in the green, while Treasuries rallied with gold. Investors are reassured the results aren’t likely to swiftly change the status quo, with opportunities opening up in different parts of the market which had sold off recently, like technology.
President Donald Trump congratulated Democrats for doing “a good job” after they inflicted devastating losses on his Republican allies, winning back both houses of Congress and picking up several governors’ mansions.
“While the present uncertainty and changing of the guard might make investors anxious, no US midterm election has ended the world, and this one will not either,” said Steven Chiavarone, chief investment officer for Global Equities at Federated Hermes. “We are looking past the noise, focusing on the real opportunities due to strong economic growth, significant infrastructure buildout and what may be the earnings cycle of our lifetime.”
Here’s a look at how markets reacted to the election results: