Mubasher: Results of the midterm elections in the United States mean that Democrats and Republicans will now share control over the Congress, after the Democratic Party was able to restore the majority in the House of Representatives, while the Republicans increased their majority in the Senate.

It is believed that the election result will lead to a less expansionary fiscal policy, with Democrats expected to resist a repeat of the Republican tax cut, as reported by the Financial Times.

This could also ease inflation pressures and the Federal Reserve commitment to raise interest rates to reach the inflation target, according to Ulrich Leuchtmann, an analyst at Commerzbank.

An expected political gridlock could buoy the stock market, Finical Times cited Aaron Anderson of Fisher Investments as saying.

A recovery is still expected for the stock market, while the dollar could maintain current levels.