Forex News Markets React to U.S. Elections Markets React to U.S. Elections Wednesday, 7 November 2018 10:31 Share 0 Tweet 0 Pin it 0 +1 With the U.S. election results rolling in, analysts and traders have been quick to react, and to consider what will come next. Asian stock markets started the day in positive territory, with the Nikkei 225 gaining 1.15 percent before reversing. As of 2:15 p.m. HK/SIN, the index was down 0.45 percent. Japan’s benchmark wasn’t alone in its decline. The Shanghai Composite was down 0.58 percent, the Shenzhen Composite was down 0.25 percent and South Korea’s Kopsi was down 0.58 percent. Only Australia’s ASX 200 was trading higher, up 0.37 percent in the mid-afternoon in Asia. Wall Street futures held steady as the election results reflected market expectations. Though the results have yet to be finalized, it appears that the Democrats have gained control of the House of Representatives while the Republicans have maintained control of the Senate. This result will make it more difficult for U.S. President Donald Trump to pass his staunchly Republican political and economic agenda, specifically his tax and immigration policies. The dollar declined slightly on the election results with the dollar index falling 0.28 percent to 996.04 .DXY. The greenback was lower against the yen, trading down 0.17 percent to 113.23. It was also lower against the British pound and the euro, down 0.14 and 0.16 percent respectively. Gold prices were higher on the dollar’s dip, with the precious metal trading up 0.29 percent to $1,229.90 per ounce. Silver was up 0.41 percent to $14.56 per ounce. Analysts don’t expect the election results to impact the trade war between the U.S. and China, specifically because the U.S. president maintains executive power regarding trade legislation and can dictate policy even with a split Congress. The divided legislative body in the U.S. may, however, impact some of Trump’s other plans, including his spending policies. Sara Patterson Sara Patterson has a Master’s Degree in political science and enjoys analyzing both current events and the international markets to get a fuller perspective of the currency market. Before turning to financial writing, she taught English writing skills to high-school age students. Sara’s work has been published on various financial and Forex blogs.