Political gridlock in the US after mid-term elections

The US Midterms this week saw the Democrats wrestle back control of the House of Representatives after eight years, while the Republicans maintained control of the Senate leaving the country politically gridlocked. The elections weren’t without their fair share of controversy. Voting machines appeared to break down in predominately black areas of the county of Georgia leaving voters unable to vote for African-American candidate Stacey Abrams with incumbent governor Kemp winning the county. In Ohio, claims of vote rigging turned out to be caused by a temporary paper jam.

The US market generally reacted positively to the news as the result went according to expectations. There is also hope that the Democrats will be willing to delay the implementation of further tax reforms or fiscal stimulus by President Trump potentially cooling the need for further rate hikes. A softening dollar also provided refreshing news for emerging countries laden with US dollar debt.

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