Monday , June 14 2021

What can midterm exam results mean for the markets?



The mid-term elections, as expected, made a split in Congress and the results fell early on Wednesday.

For the first time since 2010, the Democrats held the majority in the Assembly, while the GOP held the Senate's control; however, President Donald Trump's play in the first two years was a referendum vote.

The result seems to indicate that the president will start to challenge the legislative powers of his early office in the Oval Office, because he will be confronted with headwaves to promote or expand economic policies, including increased spending and more spending. Tax reductions have acknowledged that management supports markets and the economy.

It is not clear how changes in the political landscape will change Trump's agenda, or how investors will interpret the new cadre framework at the top. However, the resulting congestion in Washington may be a boon to the bulls:

Trump called the early morning tweet elections a great victory:

The presidential elections are scheduled to hold a press conference to discuss with Eastern Time:

Meanwhile, House Minority Leader Nancy Pelosi celebrated Tuesday's Democratic victories Tuesday: kut Tomorrow will be a new day in America. Bu

Dow Jones Industrial Average in Markets

DJIA, + 0.68%

S & P 500 index

SPX + 0.63%

and Nasdaq Composite Index

COMP, + 0.64%

As he points to the future for Dow, he is preparing to open stronger

YMZ8, + 0.48%

S & P

ESZ8, + 0.57%

and Nasdaq-100

NQZ8, + 0.82%

Dollar declines by 0.6% as measured in ICE US Dollar Index

The DXY, -0.48%

an indicator of money against half a dozen money. US government debt reflected 10-year Treasury grade yield

TMUBMUSD10Y, -0.37%

gold rose 3.18%

GCZ8, + 0.55%

and crude oil prices

CLZ8, + 0.85%

He climbs.

What did strategists say?

DOLLAR:

Er In a loveless way, capital markets have probably achieved the desired result. The concern that an imperial Republican party with both houses had adopted another round of tax cuts and thus increased the deficit was withdrawn. Meanwhile, concern may have been that tax cuts and regulatory changes could be revoked or canceled if the Democrats recovered both homes, Bu he wrote. Sean Darby, head global strategist Jeffermine tos, early Wednesday research report.

Dolar At least for now, the only sign that has changed in the financial markets after the US mid-term elections is a weak Dollar. Greenback is currently against all other major currencies. It is widely accepted that a divided congress would take place in front of some of President Trump's plans, such as financial incentive, which fueled the budget deficit. As the likelihood of a new sugar rush increases for the American economy, the strength of the Dollar is increasing, Amerikan he wrote. Ricardo Evangelistasenior analyst activtrades Wednesday's note referred to corporate tax cuts, which came into force in late 2017.

Lar The US dollar index was sold because the Democrats took control of the House of Representatives, and the Republicans retain control of the Senate. While Greenback is feeling the lives of the merchants, it will be difficult to see President Trump's congress divided. Given the success of the Democrats, Mr. Trump's chances for an additional tax cut have fallen, ın he wrote. David Madden, market analyst CMC Markets.

STOCKS:

Some market strategists had predicted Wednesday that they would lead to stronger gains on the days after the vote. In the coming days, weeks and months, the gains in stock markets tended to be monitored:

Adır Taurus-No Change 82 Upside targets (without seeing the results of the survey) up to 2782 and then 2791 additional increases in medium-term elections only depending on the price movement. Take dips near key support in 2730 & 2707-10 39 Mark Newton, founder of the market research firm Newton Consultants Wednesday.

BONDING:

Bond traders may see a split Congress as an uptrend for Treasury prices. Fixed-income investors expect Democrats to lower their expectations for other tax cuts or other measures to increase budget deficits that create piracy among bond investors, as they increase their debt taxes.

; Although we can see more volatility throughout the day, we now clearly see that the medium-term effect for bond markets will be modest; because the election results will almost change an environment where growth will lose momentum, 2. It will not affect the Fed's gradual spin cycle and will not change the President's trade dispute with China. UniCredit An early report on Wednesday.

Or The Treasury is getting closer as the dollar falls. Real money and 5 years and 10 years buying Asian bank. Due to the Democrats gaining a seat in the House, the stocks were largely gaining, there was no leri blue wave hisse and it was unlikely to restrict the current trade policy. Tom Di Galoma, Treasurys trade manager Seaport Global Securities.

FEDERAL RESERVE:

Trump criticized Fed President Jerome Powell, who backed the path from the crisis period to normalizing the interest rate policy. Some market participants fear that after a split convention, Trump will use the Fed as a possible scapegoat if the economy starts showing cracks. It has already adopted a very critical attitude towards Powell. The Fed is scheduled to begin a two-day policy meeting Wednesday. An updated statement was made from the central bank for 2:00 Thursday evening. MEAT.

CRUDE OIL:

A division in Washington may force the Trump administration to soften its stance on countries like Iran. The US president showed some sanctions against Iran's exports after allowing the Iranian crude oil to continue after eight countries despite the US. Economic sanctions against the Islamic Republic. Some energy investors also envisaged increasing regulation in the sector with Democratic Housing.

On Wednesday, the reference crude oil prices in the US rose sharply after a weak tension. WTI crude oil for December increased by 1.8% per barrel at the beginning of January, while Brent Brent oil

LCOF9, + 1.15%

The international indicator increased by 1.6% to $ 73.30 / barrel.

Bulundu Democrats have made this prediction before winning the US House of Representatives and mentioning more taxation and regulation on energy and thus hampering US energy production. This is what shale oil producers need when they try to get more money from the money they spend on a barrel of oil, Bu he wrote. Phil Flynnsenior market analyst Price Futures Group.

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