US equities were significantly higher in pre-market trading after the mid-term elections, which had resulted in Congress division.

The Dow Jones Industrial Average rose more than 200 points in morning futures. US bond prices also increased, leading to lower yields. Inventories in Europe also traded higher. Shares closed mix in Asia in the trading muted.

Wall Street is woken up with a new division of power in Congress and a likely period of legislative stalemate after the Democrats have regained control of the House, ending two years of Republican control of both branches of government. Congress under Republican President Donald Trump. The GOP retains a majority in the Senate.

The result of the vote, however, was widely expected by investors. The change of power on Capitol Hill is not seen as a decisive factor for the economy or the markets, largely because of the split in Congress making it unlikely the adoption of a legislation that could cancel parts of President Trump 's program, such as major tax cuts and corporate deregulation. – will be passed.

Investors have also avoided the most feared outcome, a so-called "blue wave" or Democratic sweep of both houses of Congress, which would have put the president's economic policy to the test.

"Everything is going according to the scenario," Stephen Innes, Oanda's Asia Trade Manager, told TODAY USA. "Trump's agenda is not seriously compromised."

Nevertheless, the Democrat-controlled House will likely make things more difficult for Trump and block his agenda, adds Mark Hamrick, Senior Economic Analyst at Bankrate.com.

"Democrats in the House will increase pressure on President Trump through investigations and control," Hamrick said.

Legislative blockages have always been good for the financial markets. In fact, over the years with a Republican President and a House headed by a Republican-controlled Senate and Democrats – the new configuration after the vote last night – the stock index 500 Standard & Poor's recorded average gains of 10.8%, according to data from research partners Strategas.

"Every second convention means that blockages are more likely and that it has already worked well for the markets," said Kate Warne, investment strategist at Edward Jones.

A Democratic-controlled congress would have been less well received by investors, as it would have raised growing concerns about the possible dismantling of regulation and other policies dictated by Trump, adds David Joy, chief market strategist at Ameriprise Financial.

"The election result was not a risky event," Joy said, citing a surprising result similar to the 2016 Brexit vote that rocked the markets. "The markets feared a blue wave that would have resulted in a government perceived as less favorable to business."

Joe Quinlan, chief market strategist at US Trust, adds that the stock market also tends to rise when election uncertainty is lifted, allowing investors to refocus on prospects such as the economic and financial outlook. corporate profits.

"The unknown is behind us," says Quinlan. "There was no surprise so investors can refocus on corporate fundamentals, which are strong and support rising share prices."

Quinlan adds that the political deadlock could lead to a reduction in stimulus measures by the federal government, which means "less risk" of overheating the US economy, which could lead to a less aggressive rise in interest rates. the Federal Reserve.

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