{"id":74168,"date":"2026-11-04T19:21:27","date_gmt":"2026-11-04T23:21:27","guid":{"rendered":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/democrats-sweep-midterms-as-global-markets-react-to-u-s-policy-shifts\/74168\/"},"modified":"2026-11-04T19:21:27","modified_gmt":"2026-11-04T23:21:27","slug":"democrats-sweep-midterms-as-global-markets-react-to-u-s-policy-shifts","status":"publish","type":"post","link":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/democrats-sweep-midterms-as-global-markets-react-to-u-s-policy-shifts\/74168\/","title":{"rendered":"Democrats Sweep Midterms as Global Markets React to U.S. Policy Shifts"},"content":{"rendered":"<h2>Key Takeaways<\/h2>\n<ul>\n<li><strong>Democrats seize full control of the U.S. Congress<\/strong> in a historic &quot;blue wave,&quot; flipping both the House and Senate for the first time in 20 years.<\/li>\n<li><strong>Australia\u2019s S&amp;P\/ASX 200 surged 1.6% to 8,973.60<\/strong> in early trade, buoyed by a strong Wall Street performance and shifting expectations for global policy.<\/li>\n<li><strong>Ukraine and allies finalized a postwar recovery plan<\/strong> in Brussels ahead of critical trilateral peace talks with Russia scheduled for November 10 in Abu Dhabi.<\/li>\n<li><strong>South Korea&#39;s current account surplus widened significantly<\/strong> to $61.46 billion in September, driven by a robust goods balance of $62.75 billion.<\/li>\n<li><strong>Iran\u2019s internal debate over nuclear weapons has moved into the mainstream<\/strong>, with clerics and officials increasingly calling for a nuclear deterrent following direct conflicts with the U.S. and Israel.<\/li>\n<\/ul>\n<h2>U.S. Midterm Results Reshape Political Landscape<\/h2>\n<p>The 2026 U.S. midterm elections have resulted in a decisive victory for the <strong>Democratic Party<\/strong>, which is projected to flip both the Senate and the House of Representatives. In the Senate, Democrats are expected to take <strong>54 seats<\/strong>, while in the House, they are projected to win <strong>258 seats<\/strong>, a net gain of 44. High gasoline prices and the ongoing <strong>U.S. war in Iran<\/strong> were cited by exit polls as primary drivers for the Republican losses.<\/p>\n<p>President <strong>Donald Trump<\/strong> is facing intense pressure from within his own party to overhaul White House personnel and scrap policies blamed for the defeat, specifically tariffs and the military engagement in Iran. Internal morale at the White House is reportedly at an all-time low as aides brace for a wave of Democratic-led investigations and staff departures.<\/p>\n<h2>Global Markets and Economic Indicators<\/h2>\n<p>The <strong>S&amp;P\/ASX 200 (<a href=\"\/stock\/XJO\">XJO<\/a>)<\/strong> jumped <strong>1.6%<\/strong> to <strong>8,973.60<\/strong> in early Thursday trade, tracking a massive rally on Wall Street where the <a href=\"https:\/\/stockmarketwatch.com\/indices\/dowjones\/today\" data-internallinksmanager029f6b8e52c=\"1\" title=\"Dow Jones Today\">Dow Jones<\/a> rose over 3%. Investors are closely watching <strong>National Australia Bank (<a href=\"\/stock\/NAB\">NAB<\/a>)<\/strong>, which is expected to report a cash profit of <strong>$6.3 billion<\/strong> for FY 2026. However, energy shares like <strong>Woodside Energy (<a href=\"\/stock\/WDS\">WDS<\/a>)<\/strong> and <strong>Santos (<a href=\"\/stock\/STO\">STO<\/a>)<\/strong> may face pressure as global <a href=\"https:\/\/stockmarketwatch.com\/energy\/crude-oil\" data-internallinksmanager029f6b8e52c=\"12\" title=\"Crude oil\">oil prices<\/a> crashed nearly 8% overnight on hopes for U.S.-led de-escalation in the Middle East.<\/p>\n<p>In South Korea, the <strong>Bank of Korea<\/strong> reported a massive jump in the current account balance for September, reaching <strong>$61.46 billion<\/strong>, up from $46.11 billion in August. This surge was primarily supported by a trade surplus in goods, which climbed to <strong>$62.75 billion<\/strong>.<\/p>\n<h2>Ukraine Peace Efforts and Reconstruction<\/h2>\n<p>In Brussels, officials from <strong>Ukraine<\/strong>, the <strong>U.S.<\/strong>, and <strong>European allies<\/strong> have concluded discussions on a comprehensive postwar recovery plan. The World Bank estimated reconstruction costs at nearly <strong>$588 billion<\/strong> as of February, a figure that continues to rise with ongoing Russian attacks.<\/p>\n<p>These meetings serve as a precursor to high-stakes trilateral negotiations in <strong>Abu Dhabi<\/strong> on November 10-11. The upcoming talks, mediated by U.S. Special Envoy <strong>Steve Witkoff<\/strong>, will focus on security arrangements, humanitarian efforts, and a potential &quot;energy truce&quot; to secure grain exports and prisoner exchanges.<\/p>\n<h2>RBA Internal Friction Over Interest Rates<\/h2>\n<p>The <strong>Reserve Bank of Australia (RBA)<\/strong> is facing internal discord following public comments by Deputy Governor <strong>Andrew Hauser<\/strong>. RBA board members reportedly rebuked Hauser for hinting that interest rates were &quot;very likely&quot; to rise, a move that saw market-implied probabilities for a November hike surge above <strong>50%<\/strong>.<\/p>\n<p>The central bank eventually raised the official cash rate to <strong>4.85%<\/strong> on November 3, the highest level in 18 years. This fifth hike of 2026 comes as the RBA struggles to contain inflation, which accelerated to <strong>4.0%<\/strong> in August, far exceeding the bank&#39;s 2.5% target.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Key Takeaways Democrats seize full control of the U.S. Congress in a historic &quot;blue wave,&quot; flipping both the House and 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