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US midterms: What Trump's defeat means for Europe and global markets
Euronews.com • • general
Key Points:
- Republicans lost control of both the House and Senate to Democrats in a midterm election seen as a referendum on Donald Trump's presidency, marking a significant defeat for him.
- Despite the losses, Trump stated he would accept the results but plans to use his veto power to block the Democrats' agenda, while also expressing willingness to work with them.
- Democrats are unlikely to end Trump's tariff policies on Europe, as these are implemented under presidential authority without needing Congress, and a divided Congress may even encourage more unilateral trade actions.
- Markets reacted positively to the election outcome, with European stocks, clean energy firms, and precious metals rising, while defense stocks fell due to concerns over potential cuts in US military spending.
- Analysts believe a divided Congress generally benefits markets by reducing legislative surprises, though risks remain around the US debt ceiling negotiations, which could impact borrowing costs and market stability.
