Democrats Win Congress, Testing Trump's Fiscal Agenda

Democrats won control of Congress in the midterm elections, making further fiscal expansion harder to pass and giving the party more leverage over spending and appointments. The election result offers a potential source of support for the US dollar, though the conflict with Iran could still matter more for markets than the shift in Congress. Since the election, the dollar has weakened, gold has gained, and crude oil has sold off sharply. European equities have risen, while Wall Street reversed its initial decline, with major US indices now trading above pre-election levels.