Dollar is overwhelmingly the weakest one today. Democrats have already won over 218 seats in House in the mid-term election to regain majority after eight years. Republicans, on the other hand, retained majority in Senate. There are talks that the gridlock in the Congress would limit Trump’s ability to push through more fiscal stimulus. Yet, there is another theory that the stocks markets were usually bullish with a split Congress. DOW futures are now pointing to higher open with triple digit gains. Major European indices are generally higher. So it seems that the latter is more true. And thus, a split Congress is unlikely the reason for Dollar’s weakness. Staying in the currency markets, Canadian Dollar is now the second weakest, followed by Japanese Yen. On the other hand, Australian Dollar is the strongest one, followed by New Zealand Dollar and then Swiss Franc.
In Europe, at the time of writing:
- FTSE is up 1.17%
- DAX is up 1.03%
- CAC is up 1.36%
- German 10 year yield is up 0.015 at 0.452
- Italian 10 year yield is down -0.076 at 3.330
Earlier in Asia
- Nikkei dropped -0.28% to close at 22085.80
- Hong Kong HSI rose 0.1% to 26147.69
- China Shanghai SSE dropped -0.68% to 2641.34
- Singapore Strait Times rose 0.1% to 3065.36
