The DAX climbed to its highest level since late August on Thursday after the US midterm results came in line with the scenario markets had considered most likely. The index was up 1.5% at 26,261 points in the afternoon, comfortably above the 26,000 mark. Its session high of 26,269 was also its highest reading since the end of August.
The report said the Democrats won the elections. A measured response from US President Donald Trump may have helped support cautious optimism: he congratulated the party on its victory and said he would not constantly use his veto powers against legislation.
Before the vote, analysts had feared that Trump might reject the result and trigger political turmoil. With Democrats holding majorities in both chambers of Congress, the report described Trump as a “lame duck” for the final two years of his term.
The effect of the election on the war in Iran remained uncertain. Ahead of November 3, concerns had been raised that the United States and Israel could intensify attacks on Iran, pushing oil and gas prices higher. The report said there was no initial sign of such a development.
Sources: Handelsblatt.