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A Democrat victory in US elections is positive for markets, though a return to fiscal discipline is unlikely, says Chief Economist at Robeco Léon Cornelissen.
The Democrats won control of the House of Representatives in the Congressional elections of 6 November, but failed to win the Senate. Mid-term elections, coming in the middle of Trump’s first term in office, are usually seen as a referendum on the sitting president.
Controlling the House means the Democrats can block any initiatives from Trump’s Republican party, which had held both chambers of Congress for the past eight years. It therefore counters the president’s power, though populist issues such as the trade war with China and more tax cuts are set to continue, Cornelissen says...
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