US mid-term elections and currency focus



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Overnight on Wall Street, the Dow Jones Industrial Average jumped more than 545 points to close at 26,180.30, while the S & P 500 gained about 2.12% to close the day at 2,813.89 . Nasdaq Composite also rose 2.64% to about 7,570.75.

The major averages had already peaked after US President Donald Trump said he was willing to work with the Democrats on political initiatives that would help the economy continue to grow.

The Democrats took control of the House of Representatives while the Republicans retained their hold on the Senate, while the result of the mid-term US elections divided Congress.

Investors expect Trump's pro-business policies to continue, while some have expressed optimism that Congress needs to better control Trump's more disruptive actions in the market. Historically, equity markets have high returns when the Congress is divided.

"With trade tensions in the forefront in recent months and risk currencies in the spotlight, the United States has interpreted halfway the question of whether the result could encourage the president to be tougher. in the wings' trade, "said David de Garis, director and chief economist of National Australia Bank, in a morning note.

"With the Democrats controlling the House, the last scenario could be a little more likely," de Garis said.

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