What the US midterms might mean for markets

The main risks for financial markets from the midterms are a contested election outcome, emboldened Democrats pushing for Trump’s impeachment, and concerns about a leftward shift by the Democratic Party. A Democratic victory in both chambers of Congress would probably put some pressure on stocks, although the legislative gridlock that would follow would limit the fallout. Meanwhile, an improbable Republican win in both chambers would probably provide a short-term boost to stocks.