LIVE MARKETS-What if Republicans lose both chambers

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WHAT IF REPUBLICANS LOSE BOTH CHAMBERS

Midterm elections are widely expected to deal a blow to Republicans and hand Democrats a clear win, with many Americans frustrated by the economy and the rising cost of living.

Here is the potential impact on markets if Republicans lose both the House and the Senate, according to Mohit Kumar, an economist at Jefferies.

It would be negative for Tech and AI stocks, with concerns over the buildout of data centers and implications for energy costs.

It would be negative for financial stocks with a lower possibility of deregulation.

It should be positive for certain emerging market countries with less risk of random tariff announcements.

And, last but not least, we could see a higher risk of political impasse around discussions about the debt ceiling.

“We are not changing any views yet,” Kumar says.

“We are still long Tech but would be looking to scale down some risks going into the midterms,” he adds.

(Stefano Rebaudo)

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