Global stocks rose and the dollar weakened after Democrats won control of both chambers of Congress. MSCI's All-World index gained 0.3%, Europe's STOXX 600 rose 1.4% to a two-month high, and the US 10-year Treasury yield fell 3 basis points to 4.92%.
Global equities recovered from overnight lows after Democrats won control of the Senate and House, while the dollar dipped. MSCI's All-World index rose 0.3% and the STOXX 600 climbed 1.4% to a two-month high; US stock futures rose around 1% after falling as much as 2% overnight.
Investors expect the Democratic-controlled Congress to apply greater scrutiny to AI. Tesla and SpaceX shares fell around 4.5% to 5% in premarket trading, while other Big Tech stocks rose 0.8% to nearly 3%. Defence shares fell on both sides of the Atlantic, including declines of nearly 4% for BAE Systems and 1.5% to 2.8% for US weapons makers.
The US 10-year Treasury yield fell 3 basis points to 4.92%, and the dollar weakened broadly. The Mexican peso strengthened, leaving the dollar down nearly 1% against it; the Swiss franc gained 0.6% against the dollar. Brent crude fell 0.4% to $103.17 a barrel.
