Global stocks rally as Democrats win US midterm elections

Global stock markets surged Wednesday after Democrats won control of both houses of Congress in the US midterm elections, dealing a heavy defeat to President Donald Trump and his Republican party. European indexes jumped around 2.0 per cent, while the Dow opened up 2.3 per cent. The Democratic victory gives them power to block legislation, open investigations into Trump's administration, and thwart his judicial and senior appointments. Analysts expect political gridlock, which is traditionally seen as positive for markets, though the dollar sank and oil prices dropped over 3.0 per cent. Asian markets also performed strongly, though Tokyo ended lower on tech sector struggles. Investors also weighed eurozone inflation hitting a three-year high of 4.0 per cent, while BMW announced job cuts and Google planned a US$15 billion investment in Malaysia.