Comment: The US elections could once again exacerbate a major risk for the markets
The direct consequences of the midterms for the stock market are likely to be limited. However, a president crippled by domestic politics could create new dangers.
The Democrats' landslide victory in the US midterm elections is expected to cause significant political upheaval in the world's largest economy. However, the markets are unlikely to be severely impacted in the short term, as President Donald Trump retains his veto power, which he can use to block legislation he dislikes. In the long term, the shift in power could have a positive effect on the Wall Street and the financial world.
The midterm elections are unlikely to eliminate a major risk, which could even become more acute. The power sharing between Congress and the President may reduce the likelihood of massive new tax cuts or huge spending programs.
Written by urgent.news from Handelsblatt's report — not a translation of it. Machine-written — may contain errors; check the original before relying on it.
