Global markets down on Democrat victory

Stocks plunged across the globe on the news that the Democrats had gained control of the House of Representatives for the first time in twelve years.

The markets were worried by the sentiment that the new power balance would be less business friendly and would slow the pace of legislation.

In general the results have been welcome by politicians outside of the US. With a feeling of hope and optimism that the US may soften its confrontational position in global trouble spots and that as a result trade will be on better terms.

The reaction of the market is inevitable, just as the reaction caused by the new found uncertainty is bound to affect other markets in the short term. Once the pronouncements are official we expect the market to rebound quite quickly, negating the events of the past day.

We expect the Democrats to set about quickly establishing a series of its own policies and making those policies known in preparation for the next Presidential election. At the same time the Democrats need to prove that they too are a party of business and not just one of spend.

With two seats left in the Senate to decide (Montana and Virginia) the race to run the Senate is close.

As of this morning the markets sit at

DJIA 12140.20 down -16.57
 
NASDAQ 2374.09 down -1.79
 
NYSE 8817.09 down -18.13

S&P 500 1380.47 down -2.37
 
UK FTSE 100 6219.90 down -24.10

Australia ORD 5425.10 down -31.60
 
Japan NIKKEI 16215.74 down -177.67
 
France CAC-40 5426.77 down -11.01
 
Germany DAX 6337.41 down -24.55
 
India BSESN 13072.51 down -84.15