Midterms in the USA: text points to Democratic resumption of the Senate and pressure on the Chamber

The midterm elections in the United States, scheduled for Tuesday, November 3, have the potential to redefine who commands the American Congress in the last two years of the Trump administration. According to an opinion text published by InfoMoney, the Democrats regained the Senate and are preparing to return to the Chamber of Representatives, although the text does not mention an official result.

This is not about choosing a president. According to Times Brasil, the election decides the formation of the Legislature, can interfere with the republican's agenda in the final two years of his term and has the capacity to affect the lives of Brazilians who live in the USA, in addition to possible effects on the direction of the country's economy and commercial relations with other nations.

The same InfoMoney text claims that tens of millions of voters voted against the Republican Party and attributes practices such as gerrymandering, false claims of fraud and efforts to block mail-in voting in the midterm elections to Trump. These are statements from an opinion text, and not from official investigation.

On the Republican side, Revista Oeste reports that the party is trying to maintain majorities in the Chamber and Senate. On Sunday (1st), speaking at an event in Kansas, Trump stated that the party needs to guarantee another two years with control over both houses.

The investigation schedule also requires patience. According to the NCSL, counting begins at 8 pm (Brasília time) on Tuesday, when the first polls close in regions of Indiana and Kentucky. At the end of the calendar, voting closes at 3pm on Wednesday (4) in the Aleutians, Alaska, while Hawaii and the rest of Alaska close at 2pm. The conclusion about who will be in charge of the houses could take days, depending on the rules of each state, voting by mail and the margin between the candidates.

Until the final result, what is at stake is the ability of each party to approve its agenda over the next two years, and the reading of the two houses will depend on the definitive composition of each one.

What changes for the investor

Markets often react to changes in expectations about economic policy, and this reading may appear before the final count. A divided Congress or one with a majority from another party tends to make it difficult to approve changes in fiscal and commercial issues, which influence interest rates, the dollar and the prospects of companies traded on Wall Street. In reading The X-Trader News' editorial line, brakes on new spending and taxes would provide more fiscal predictability, but this depends on the final result. This article does not provide a purchase or sale recommendation and does not project prices; the investor must follow the investigation, the final composition of the two houses and the signals on taxes and public spending.

Automatically translated from Portuguese.