Franklin Templeton: Democrats Gain Advantage in Election Outlook, Risk Aversion Heats Up in Markets

November 4 - Andrew Canobi, head of Australian fixed income at Franklin Templeton, said the initial financial market reaction to the U.S. midterm elections can be summarized as a slight shift of funds from stocks to bonds, showing a certain risk-averse tendency.

He added that if Democrats control Congress, the market may view this as a constraint on U.S. President Trump's growth agenda, especially in the AI and resources sectors. In addition, as traders believe the Reserve Bank of Australia may be nearing the end of its rate hikes, the yield on Australian three-year government bonds has fallen 15 basis points since the start of the week. (Jinshi)