Dow Futures takes the lead as Democrats take their homes and Republicans sit in the Senate

The market minute of Wednesday

• Global equities are on the rise as polls predict Democrats will take control of the House of Representatives for the first time since 2010, while Republicans will expand their majority in the Senate.
• The US Dollar slips into night trading as the "split" Congress suggests some of President Donald Trump's expansionary fiscal policies could be stopped by rival lawmakers.
• Asian stocks posted modest gains as investors equated a widely-predicted outcome with pollsters, but trade, tariffs and stimulus issues remain for international investors.
• World oil prices continue to fall, surpbading 15%, as traders focus on increasing US supply and almost record production on penalties for selling Iranian crude.
• US equity futures announce modest gains after the Wall Street election, with the Dow Jones gaining 200 points from 21st Century Fox, Humana, Marathon Oil and Qualcomm.

Market overview

Global equities rallied sharply on Wednesday, as the US dollar depreciated and treasury bond yields retreated as investors reacted to forecasts suggesting that Democratic lawmakers would regain control of the House of Representatives for the first time. the first time since 2010, which could have a negative impact on President Donald Atout's key economic initiatives.

Polling stations have recently closed in California, badysts predict a majority in the House of Democrats of 11 seats, who hope to have sparked a wave of dissatisfaction of voters against the President, despite its track record in employment, economy and financial markets, such as health care topping the list of voters' concerns.

Polls at the ballot box say Republicans will either maintain or eventually widen their majority in the Senate, creating a so-called "split" congress that typically tilts S & P 500 returns in the next few years down averages post-election history.

"Thanks to you, tomorrow will be a new day in America," said Democratic House Speaker Nancy Pelosi in Washington. "We will have an open, transparent and accountable congress in front of the American people".

Early indications from US equity futures indicated that traders were optimistic about the projected results, as pollsters largely anticipated a split, as the contracts were tied to the Dow Jones Industrial Average. indicating an opening bell gain of 206 points while those related to the S & P 500 guide towards a 25-point lead for the wider marker. Nasdaq Composite the futures contracts suggest a gain of 105 points for the technology-based index.

European equities rose sharply at the opening bell, with the Stoxx 600 up 1% in the first few minutes of trading, thanks to strong gains from regional bank stocks, particularly in Spain, after the country's Supreme Court overturned a government decision that would have forced them to pay billions of tax arrears related to home purchases.

The US dollar index, which compares the greenback to a basket of six world currencies, fell 0.5% to 95.85, while international investors were betting that the new majority of the House would seek to block parts of Trump's economic agenda, there are aggressive efforts to reduce the country's trade deficit and plans for a tax cut for the middle clbad.

Government bond yields, a key measure for stock investors, are worried that a faster rate hike from the US Federal Reserve will suppress stock market gains next year. It also slowed down in overnight trading positions, with 10-year benchmark bonds falling to 3.185%, despite the sale of Treasury securities. A new $ 83bn debt on the market this week.

The decline in the dollar, combined with the prolonged drop in world oil prices, which exceeded its lowest level in seven days, supported energy-importing markets in Asia, but pushed the Nikkei 225 to Japan, where Export stocks are sensitive to any increase. yen, down 0.28%, the benchmark closing at 22,085.80 points.

Chinese equities, however, were weaker, with the Shanghai Composite down 0.56% and the Hang Seng down 0.31%, investors baduming that a democratic house could support some radical positions of the president on US-Chinese trade.

World oil prices continued to fall in overnight trading, investors focused on private data from the American Petroleum Institute, which showed that domestic crude inventories increased by $ 7.2 million, to reach 432 million barrels, thus boosting near record collective production of about 33 million barrels a day. Saudi Arabia, Russia and the United States will more than compensate for the sanctions imposed for the sale of Iranian crude.

Brent's January delivery contracts, the global benchmark, fell 9 cents from Tuesday's New York close of $ 72.04, prolonging their fourth-quarter decline to 15 percent. , while WTI contracts for December are tighter. loved the US gas prices, were marked 20 cents lower at $ 62.01 a barrel.