Global financial markets fall after the U.S. elections / The dollar depreciates amid fears of a political deadlock in Washington

Global financial markets fell on Wednesday after projections for the United States midterm elections indicated that Democrats were on track to take control of the House of Representatives and had a strong chance of controlling the Senate as well. The election result amplified uncertainty over the economic policy of the Donald Trump administration.

Futures contracts for major European indices were down between 0.3% and 0.5%, while the Euro STOXX 50 fell by approximately 0.7%. The dollar weakened against the euro, pound sterling, and yen, while bond yields posted moderate movements.

The negative reaction also spread to Asian markets. The Tokyo Stock Exchange lost 2.85%, the Kospi index fell 1.17%, and the Taipei Stock Exchange dropped 2.3%. By contrast, Hong Kong’s Hang Seng index rose 0.38%. Technology company shares were affected by concerns over possible stricter regulations for artificial intelligence and data centers.

Analysts fear that a Democratic victory could lead to legislative gridlock, disputes over fiscal policy and the public debt ceiling, as well as congressional investigations into the administration. Donald Trump warned that he could use his veto power against Democratic initiatives, although he did not rule out negotiations.

Oil prices fell, while gold rose by nearly 0.5% to $3,958.50 per ounce. Analysts believe that the scale of the election result will determine how much markets adjust their expectations regarding the president’s economic agenda through 2028.