On the stock exchanges in Europe, a positive session was announced on Wednesday and the New York stock markets followed the same trend as trading above 1%.
European shares closed on Wednesday with a 1.5% profit, according to the MSCI index. The MSCI for the euro area increased only by 1.68%. The Eurostoxx 600 index (of the above six hundred European shares) closed at 0.99%. Madrid, Dublin, Brussels, Vienna and Milan made hikes, with the Spanish Ibex 35 gaining 1.99% and the Irish ISEQ 1.93%. In Lisbon, PSI 20 advanced by 0.8%.
When closing in Europe, the session continues along the Atlantic. In the United States, the two major New York Stock Exchange indexes, Dow Jones 30 and S & P 500, were up 1.1% and 1.3% respectively. Nasdaq, the technology index, advanced 1.8%. New stock markets in New York were already this week, and the MSCI index increased by 0.5% and 0.6% on Monday and Tuesday after losing on Friday.
Interest (yields) 10-year US Treasury Shares increased on the secondary market to 3.19%, but remained below 3.26% high in October. On the day of the full election, the State Treasury held a 10-year debt auction where it paid 3.209%, which is less than the previous issue when it paid 3.225%.
The congressional midterm elections that took place on Tuesday were the most pessimistic scenario of a political disorder with the "blue" tsunami (the victory of the Democrats in the two congress halls). The results of the victory of the Democrats in the House of Representatives and the Senate Republicans were in line with the surveys and what investors expected.
Democrats who are worried by many investors could now be the second fiscal package in 2019, although the check of federal spending in the next two years, suffered by Trump's expansive fiscal policy, is pleased with other investors looking at the growing federal deficit and debt. The fiscal expansion of Trump's administration can stimulate the federal deficit from 3.8 percent of GDP in 2017 to 4.7 percent in 2018 and 5 percent next year. The total public debt in the US could increase to 110 percent of GDP in the last year of the Trump period, more than three percentage points of GDP above the level 2016 that its predecessor left, and despite the planned four years of operation.
Asia fears an escalation in a trade war with China
"In the first reading of the results there is a greater polarization in American society, but Trump's rejection – according to the results of the Senate. The president will now be more conditional in his internal governance, with Democrats, especially in the House of Representatives, trying to block most of the economic and budget policy, "said Filipe Garcia, president of the financial information system. "The fact that the US economy is on the right track has ultimately helped to avoid the worst outcome for Trump, which is why the greatest danger is a possible slowdown in economic growth. Focussing on domestic politics, it will not be surprising if the President focuses more on foreign policy , where it may become even worse, "concluded a financial analyst.
This fear of a worsening trade war with China took place Wednesday in Asia, where two Chinese exchanges and markets in Seoul and Tokyo ended in red. Concerns about the escalation were felt at the Economic Forum organized by Bloomberg in Singapore, which ended on Wednesday. The most authoritative voice at the meeting of the city and the state was former Secretary of State Henry Kissinger, one of the cheerful geopolitics, who drew attention to the danger of "coming out of control".