Bullish sentiment goes global after mid-terms

Chris Beauchamp IG

A tidal wave of buying has washed over equity markets, precious metals and cryptocurrencies, while Brent has dropped below $100, says Chris Beauchamp, Chief Market Analyst at online trading and investing platform IG.

Euphoria sweeps over stocks after Democrat tsunami

Worries about AI spending and the war in Iran have evaporated as swiftly as Republican hopes of holding on to the Senate. Stock markets have indulged in a frenzy of buying now that the ‘clearing event’ of the mid-terms is out of the way. This turnaround might seem odd to even to the most cynical market veteran, but investors really do seem to love the prospect of a US government bogged down in infighting between the executive and the legislature. Maybe we can finally get on with that post mid-term rally after all.

Gold, Silver and Bitcoin soar as Oil slumps

From the looks of it, it appears investors are pricing in an end to the war in Iran that will bring down oil prices and tame inflation, and make non-yielding assets like precious metals and cryptocurrencies great again. Brent’s drop below $100 is the totemic event that many had hoped for, matched by gold’s recovery above $4000 that sees it back above the summer lows. Meanwhile, bitcoin seems to have carved out a higher low, and now investors will want to see a recovery in inflows to these assets in order for the rally to be sustained.

Author

Chris Beauchamp

Chris Beauchamp has been with IG for four years, and in that time has become a regular commentator and analyst for the financial press and TV, with appearances on all the major financial channels as well as the BBC and Sky News.

AUD/USD flatlines near 0.6965 as less hawkish RBA counters USD weakness

AUD/USD holds steady above a two-week low, trading near 0.6965 in the Asian session on Wednesday as early midterm election results heighten political uncertainty and weigh heavily on the US Dollar. Moreover, reviving safe-haven demand triggers a fresh leg down in US bond yields, offsetting Fed hike bets and exerting additional pressure on the buck. However, a less hawkish RBA caps the Aussie.

USD/JPY declines below 158.00 as USD weakens on midterm election results

USD/JPY comes under heavy selling pressure on Wednesday, dropping below 158.00 during the Asian session as the US Dollar slumps to a one-month low amid heightened political uncertainty after early US midterm vote counts. Moreover, the prospect of gridlock in Washington drives safe-haven flows, triggering a fresh leg down in US bond yields and further weighing on the buck.

Gold pops to four-day highs near $4,050

Gold manages to regain some composure, leaving behind two consecutive daily pullbacks and reclaiming the area above the key $4,000 mark per troy ounce on Wednesday. The strong decline in the US Dollar, shrinking US Treasury yields across the curve and lower crude oil price all contributes to the yellow metal’s recovery.

Crypto Today: Bitcoin, Ethereum, XRP extend advance as US Dollar slides on Democrats' US midterm victory

Bitcoin trades above $78,000 on Wednesday as risk-on sentiment improves in the broader cryptocurrency market. Ethereum mirrors BTC’s recovery outlook, hovering above $2,300. Ripple similarly exchanges hands above $1.28, marking two consecutive days of gains.

US midterms 2026: Investor Q&A on the Democratic sweep

1. Gridlock replaces the stimulus narrative. A Democratic Congress would constrain Trump's ability to pursue additional fiscal expansion and legislative tax measures. But it cannot simply reverse the president's entire economic agenda. Executive powers, existing legislation and presidential vetoes remain important. 2. AI faces a higher hurdle, not an extinction event.

US Dollar breaks below 101.50 as Democrats sweep Congress

The US Dollar (USD) comes under heavy selling pressure on Wednesday, with the US Dollar Index (DXY) falling around 0.5% to trade near 101.35 after sliding below the 101.50 level. The Greenback retreats to its lowest level in four weeks as investors reassess the political and economic outlook following the Democratic Party's sweeping victory in the United States (US) midterm elections.