[Report] Preliminary vote counts in the US midterm elections show a strong performance from the Democratic Party, prompting markets to reassess the Trump administration's fiscal policy space for the next two years. As the likelihood of Democrats controlling Congress increases, the yield on 10-year US Treasury bonds and the US dollar are under pressure, while international precious metal prices rebound. The market believes that if the Democrats control both the House and Senate, it will be more difficult for Trump to push forward his tax cuts and fiscal expansion plans, potentially further depressing US Treasury yields and the dollar. However, falling oil prices have eased inflation concerns, also contributing to the decline in yields. But if the Democrats only win the House, the impact may be relatively limited, as the market has already largely priced in the expectation of a Democratic victory in the House.
