Republicans’ victory historically meant good news for US stocks

This week will witness markets focusing on Tuesday’s US mid-term elections on. Economists at Société Générale expect equities to go up if the Republicans win control of both the Senate and the House.

Victory for the Republicans GOP could have negative ramifications for the Euro. The US midterms could have an important say on Wall Street and by extension high beta currencies. If history could serve as a reliable guide, US stocks have historically tended to do well after the Republicans win control of both the Senate and the House.

On the other hand, Republicans’ victory could have negative ramifications however for the Euro if Washington decides to curb either financial or military support for Ukraine amid the ongoing war. If stocks can hold their ground and even extend gains on a Republican victory tomorrow with control of Senate and the House, then the US dollar could reach a positive turning point.