"World Financial Markets Rattled by US Elections
November 8, 2006
"LONDON (AFP) - Global finance markets have wobbled on fears that a Democrat victory in the US Congressional elections could prompt less market-friendly policies in the world's biggest economy.
Photo: Dealers keep an eye on money trading at a Tokyo's foreign exchange brokerage. The dollar has wobbled in Asian trade as traders fretted that a Democratic victory in the US House of Representatives could usher in less market friendly economic policies, dealers said. (AFP/File/ Kazuhiro Nogi)
Investors watched nervously as jubilant Democrats seized power in the US House of Representatives for the first time since 1994 and edged closer to taking the Senate, pushing European and Asian equities lower and weighing also on the dollar.
European indices eased off fresh five-year highs struck the previous day, while Japanese shares tumbled by more than one percent, as investors also feared that a split in power in Washington would create legislative gridlock.
"The European market started slipping lower (on Wednesday) with the Democrats taking power from the Republicans, traditionally thought of as more business friendly," said Michael Davies, an analyst with the Sucden brokerage firm in London. "...........