Democrats' Texas win spells trouble for datacentres, analysts say
The Texas win for the Democrats spells trouble for datacentres, analysts say.
According to Chris Beauchamp, chief market analyst at IG in London:
Tapas Strickland, chief market strategist at the investing platform Moomoo ANZ in Sydney, told Reuters earlier:
Christopher Hodge, chief US economist at Natixis in New York, says:
Deborah Cunningham, chief investment officer of global liquidity markets at Federated Hermes, says:
The Democrats have taken control of Congress in the 2026 midterm elections. What does this mean for investors?
Steven Chiavarone, chief investment officer for global equities at Federated Hermes, says:
'Blue wave washes over US, futures recover', analysts say
Chris Beauchamp, chief market analyst at the investing and trading platform IG, says:
And Axel Rudolph, chief technical analyst at IG, adds:
Introduction: Dollar falls while gold and US Treasury bonds rally as markets react to Democrats’ midterm election victory
Good morning, and welcome to our rolling coverage of business, the financial markets and the world economy.
The dollar has hit a one-month low, US stock futures are down and gold rose after the Democrats won control of Congress, increasing expectations of tougher regulation of the AI sector.
US Treasuries rallied as fears around the fiscal outlook eased and investors sought the safety of bonds with the dollar falling.
Democrats regained control of the Senate and also triumphed in the House of Representatives, routing Republicans nationwide with historic victories that will give them powerful new leverage over Donald Trump for the remainder of his presidency.
You can follow the latest on our midterm election blog here:
The dollar fell 0.6% against a basket of major currencies at one stage, and is now down 0.35%. Its decline was most pronounced against the Japanese yen and the Swiss franc, both seen as safe-haven currencies.
Gold prices rose 2.4%, supported by the weaker US dollar. Spot gold climbed to $4,022 an ounce.
US stock futures fell sharply, with tech-heavy Nasdaq futures losing more than 2% before paring those losses to 0.25%. S&P 500 futures are down 0.2%.
In bond markets, the two-year Treasury yield fell 3.5 basis points overnight and is now down 1.6bps at 4.598%, while the 10-year yield is 2bps lower at 4.929%. Yields move in opposite direction to prices.
Jim Reid, head of global macro at Deutsche Bank, explains:
In Asia, Japan’s Nikkei lost 1.4% while Hong Kong’s Hang Seng rose 1.3% and South Korea’s Kospi gained 0.4%.
Stephen Brown, chief North America economist at Capital Economics, says:
The Agenda
9am GMT: S&P Global Eurozone services and composite PMIs for October
9.30am GMT: UK services and composite PMIs for October
10am GMT: Eurozone inflation flash for October
1.15pm GMT: US ADP Employment change for October
1.30pm GMT: US Trade for September
3pm GMT: US ISM Services for October
