Skip to comments.World financial markets rattled by US elections
Posted on 11/08/2006 8:05:09 AM PST by lowbridge
Global finance markets have wobbled on fears that a Democrat victory in the US Congressional elections could prompt less market-friendly policies in the world's biggest economy.
Investors watched nervously as jubilant Democrats seized power in the US House of Representatives for the first time since 1994 and edged closer to taking the Senate, pushing European and Asian equities lower and weighing also on the dollar.
European indices eased off fresh five-year highs struck the previous day, while Japanese shares tumbled by more than one percent, as investors also feared that a split in power in Washington would create legislative gridlock.
"The European market started slipping lower (on Wednesday) with the Democrats taking power from the Republicans, traditionally thought of as more business friendly," said Michael Davies, an analyst with the Sucden brokerage firm in London.
London's FTSE 100 index of leading shares slid 0.53 percent to 6,211.00 points, Frankfurt's DAX 30 index dipped 0.44 percent to 6,334.20 points and in Paris the CAC 40 index shed 0.47 percent to 5,412.18.
The DJ Euro Stoxx 50 index of top eurozone shares lost 0.41 percent to 4,055.98 points.
The US dollar meanwhile staged a slight retreat against the euro and the yen.
"Although the outcome of US elections is unlikely to have a huge effect on the greenback, there are many that argue that if the Democrats win control of the House of Representatives, this will lead to a rise in protectionist policies or to political deadlock that could slow reforms," Davies added.
However, oil market analysts dampened talk that the vote would have an immediate impact on US foreign policy in the oil-rich Middle East.
In Asia on Wednesday, Tokyo's benchmark Nikkei-225 shares index lost 1.08 percent to close at 16,215.74 points.
(Excerpt) Read more at news.yahoo.com ...
One has to look very hard for a benefit of the democrat victories.
"fears that a Democrat victory"
Where were these reports before the election??? Watch how the MSM plays WOW we didn't know how bad things were gonna get... Same with the Stay at home Conservatives... If we only knew how bad it would have been we would have been out in force... sorry too late I have become the epitomy of cynasim
Can you blame them? The inmates have just seized control of the asylum.
The democrats want to raise minimum wage, so there goes the tax breaks the businesses used to build and hire. There's gong to be lay offs and downsizing coming. That'll also reduce the tax revenue going to Washington.
The Republicans gave us a record low unemployment rate, but the democrats are going to screw it up. Without social dependents, the democrats have no base.
The whole world is realizing their turn in an orange
jumpsuit in front of Al-jezera Video cameras is not far off!
And why wouldn't the world financial markets be rattled by the results of Tuesday?? It's all very unnerving!
The dow is down less than 20 at this moment and would have been down today regardless of the election results. Markets are not in shock over dems win and not rejoicing republican losses.
Give it time, we are still in shock.
Time to go long the Swiss Franc (FXF) and GLD.
You didn't miss it by much.
Incoming Democrats will go on the record that they are going to be Business friendly, that they wont enact draconian laws, yadda yadda, that they will do things to help the economy, yadda yadda, and the financial markets will recover, but the Liberals in the party will have a sh*tfit.
Why would you pay off the mortgage if you fear inflation? Wouldn't it make more sense to place funds in short term notes or something else that you can take advantige of expected volatility so you can later pay back w/inflated $'s?
That is correct. The bus departing for the descent into h3)) will not leave the station until later.
Expired tax cuts and increased minimum wage will break the markets back. This is what the democrats want. The more people get on social programs, the more the democrats can offer government cheese in exchange for a vote. Hey, people have got to eat.
Hopefully, Bush will grow a pair and learn how to use his VETO pen.
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