Markets are giving a warm reception to midterm election results, with the GOP securing control over both the House and Senate. This development is generally being seen as pro-business and as you can imagine, pro business is pro stocks.
Second term presidents losing control of congress is a familiar pattern. Reagan, Clinton, and Bush all found themselves in a similar situation, so maybe the Republican sweep shouldn't be all that surprising. At any rate, we'll see if the shake-up can open the door to any economically beneficial legislative changes.
Offsetting the positivity surrounding the election results was a series of poor data from overseas. Readings on service activities in China and India came in light, as did retail sales in Europe. The lone bright spot was the Eurozone services PMI (Purchasing Managers Index) which rose to 55.9, well above forecasts. With all PMI figures, both manufacturing and services, readings above 50 signal expansion while readings ... Log in or subscribe to continue reading.