WS #16817

The global financial landscape is undergoing a sharp repricing following the Democratic sweep in the US midterms, which has effectively ended unified Republican control and shifted the political equilibrium toward divided government. This outcome has triggered a flight to safety, evidenced by strengthening US Treasuries, a weakening US dollar, and a surge in gold prices past the $4,000 mark. While the political shock initially weighed on risk assets, US stock futures have stabilized and trimmed losses as markets digest the implications of a constrained executive branch, particularly regarding the ongoing military operations in the Strait of Hormuz.