Global markets recover as Democrats win US Congress seats
Equities reversed earlier losses and gold prices surged after uncertainty regarding the US midterm election results began to fade.
Global stock markets recovered from a selloff triggered by a Democratic sweep of the US Congress, according to a report by Mint. Investors returned to the market to buy shares as uncertainty regarding the election results diminished.
US stock futures turned positive as major risks, including the Federal Reserve's decision to keep rates unchanged and the midterm elections, moved into the background. The Nasdaq 100, which had entered a correction on Monday, erased losses of 2.4 per cent to advance 0.9 per cent.
Renewable energy stocks rallied across Asia, Europe, and the US as investors viewed the Democratic victory as supportive of the clean energy supply chain. In South Korea, Hanwha Solutions Corp. surged 19 per cent, while Denmark's Orsted A/S and SMA Solar Technology AG rose more than 8 per cent.
Gold prices jumped 3.1 per cent to rise above $4,000 an ounce, marking the largest gain since August. This rally occurred as the US dollar fell and Treasury yields declined.
Steven Chiavarone, chief investment officer for Global Equities at Federated Hermes, said that while the changing leadership might cause investor anxiety, no US midterm election has ended the world. He stated that investors are focusing on opportunities from economic growth and infrastructure buildout.
President Donald Trump congratulated the Democrats for doing a good job after they won back both houses of Congress and several governorships.
