The key facts

  • Democrats won both chambers of Congress and a number of gubernatorial races, including Texas
  • Brent fell below $94 per barrel — a two-month low, while WTI dropped to $86.66
  • The dollar weakened, the euro rose to $1.1263, and gold traded around $4,134 per ounce

Elections changed market sentiment

Global commodity prices and major currencies shifted sharply on Thursday following the US midterm elections, Anadolu reports. According to the vote results, Democrats won majorities in both the Senate and the House of Representatives, stripping Republicans of control of Congress. Democrats also won a number of gubernatorial races, including in Texas, where Gina Ortega-Hinojosa defeated the incumbent Republican governor Greg Abbott — Republicans had governed that state for more than three decades.

Oil and the dollar under pressure

Oil quotes came under heavy selling pressure: Brent fell below $94 per barrel to a two-month low, and by 06:08 GMT was trading at $94.33. The US benchmark WTI dropped to $86.66 before recovering to around $87.34. The US dollar index fell to 101.06, extending the previous session's decline, while the euro rose to $1.1263 — its highest level since early October. The euro received additional support from data showing that annual inflation in the eurozone accelerated to 4.0% in October — the highest since September 2023, driven by rising energy prices — as well as signals from ECB officials about a possible rate hike to curb wage-driven inflation.

What lies behind the investor reaction

According to Anadolu, investors viewed the election results as a potential constraint on Trump's trade, fiscal and foreign policy — against the backdrop of growing economic pressure from the US and Israel's war with Iran. At the same time, Trump himself said he was ready to accept the election results and work with the Democrats, which eased concerns about prolonged political uncertainty. Lower energy prices are expected to ease global inflationary pressure and reduce concerns about possible rate hikes by central banks in the near term. Against the backdrop of a weak dollar and falling US Treasury yields, precious metals gained value: gold rose toward $4,150 per ounce — a two-week high — and by 06:08 GMT was trading at $4,134.