US midterms: Democrats’ victory draws global reactions, puts Trump under pressure

MaTaZ ArIsInG
Dallas, Texas

Bioluwatife Akinyemi

…world leaders hail outcome as rejection of Trump’s policies

The Democratic Party’s victory in the 2026 United States midterm elections has drawn reactions from world leaders, with several describing the outcome as a rejection of President Donald Trump’s policies and a possible turning point in international relations.

The Democrats secured control of both chambers of Congress, the Senate and the House of Representatives, in Tuesday’s elections, dealing a major political setback to Trump and his Republican Party.

According to The Guardian, the outcome is seen as a referendum on Trump’s administration, particularly its handling of the economy, cost-of-living pressures and foreign policy, including the war involving Iran.

Global leaders react to Democrats’ victory

British Prime Minister Andy Burnham expressed hope that the outcome would provide the world with an opportunity to focus on ending the Iran war and addressing the rising cost of living.

London Mayor Sadiq Khan, who has frequently been criticised by Trump, congratulated the Democrats, describing their campaign as a rejection of what he called the president’s damaging and divisive politics.

In a post on X, Khan said the Democrats’ emphasis on hope, unity and support for families struggling with the cost of living had contributed to their victory.

Iranian parliament speaker and chief negotiator Mohammad Baqer Ghalibaf also attributed the Republicans’ poor performance to Trump’s handling of the war against Tehran.

He said Americans had rejected war and the economic consequences of the conflict, which has contributed to a global energy crisis and worsened living costs.

Ghalibaf wrote on X: “Conscience or the cost of living, Americans said NO TO WAR, and we endorse this message.”

He warned that the United States government would face consequences if it ignored the public’s position.

In Israel, opposition leaders criticised Prime Minister Benjamin Netanyahu, arguing that the US election outcome exposed the growing unpopularity of his government among both Democrats and Republicans.

Opposition figure Yair Golan said the results showed “just how toxic Netanyahu is among both Democrats and Republicans”, warning that his coalition could push Israel further into international isolation and confrontation with Washington.

Another opposition leader, Yair Lapid, said the outcome had effectively ruled out the possibility of a unity government led by Netanyahu.

South African President Cyril Ramaphosa also welcomed the outcome, saying the American electorate had made its position clear.

“The people of America have spoken,” he said, expressing hope that the development would usher in a new era in international relations and improve diplomatic engagement between Pretoria and Washington.

In Europe, Spanish Prime Minister Pedro Sánchez described the Democratic victory as evidence of a progressive political resurgence and the weakening of what he called the “ultra wave”.

Sánchez, who has been among Trump’s most outspoken European critics, said American voters had rejected policies that impoverish citizens, as well as hate, sexism, climate change denial and the privileges of political and economic elites.

Polish Prime Minister Donald Tusk also celebrated the outcome, declaring that democracy had won in America.

He expressed hope that the results would help stabilise international relations, particularly in his region, while cautioning against excessive use of presidential veto powers in domestic governance.

Norwegian Prime Minister Jonas Gahr Støre described the outcome as a powerful political signal indicating a change in direction among American voters.

He said emerging voices in American politics were closer to Europe’s positions on climate change, environmental protection, foreign policy and development assistance than those of Trump’s administration.

Germany’s Defence Minister, Boris Pistorius, congratulated the Democrats on what he described as a historic victory, while Foreign Minister Johann Wadephul expressed hope that the outcome would create opportunities for renewed engagement with Democratic lawmakers, particularly on the war in Ukraine.

French Finance Minister Roland Lescure said Trump now faced a choice between adjusting his policies, particularly on fuel prices and international engagements, or maintaining his current approach.

European Union foreign policy chief Kaja Kallas said American voters had made their choice clear, expressing hope that the new Congress would maintain support for Ukraine and increase pressure on Russia to end its war.

The Kremlin, however, expressed hope that the election outcome would not affect Trump’s efforts to negotiate an end to the war in Ukraine.

Russian presidential spokesperson Dmitry Peskov said Moscow was counting on the US president to continue his peace efforts.

Markets rally as investors reassess Trump’s political future

Meanwhile, US and European financial markets reacted positively to the Democrats’ victory, with American stocks surging on expectations that a Democratic-controlled Congress could restrain Trump’s policymaking and reduce political uncertainty.

The Dow Jones Industrial Average rose by two per cent, while the technology-heavy Nasdaq and the benchmark S&P 500 gained more than one per cent each, reversing earlier losses in US stock futures.

The gains came as investors reassessed the implications of the election outcome, particularly the likelihood of increased congressional scrutiny of Trump’s policies during the remaining two years of his term.

However, the US dollar weakened against major international currencies, falling to a one-month low on Wednesday amid declining bond yields and increased demand for US Treasury securities.

The dollar index, which measures the currency against a basket of six major currencies, dropped to its lowest level in a month, while the British pound climbed to its highest level since mid-September. The euro also strengthened against the dollar.

The dollar equally lost ground against the Japanese yen and the Swiss franc, both traditionally regarded as safe-haven currencies during periods of economic and political uncertainty.

The yield on the benchmark 10-year US Treasury bond fell by 4.7 basis points to 4.918 per cent, while that of two-year bonds declined by 3.7 basis points to 4.597 per cent.

Axel Rudolph, chief technical analyst at trading platform IG, said the scale of Republican losses would raise questions about Trump’s ability to implement his political agenda over the next two years.

He said financial markets were already responding to the changing political outlook, with the dollar coming under pressure while gold and silver benefited from increased demand for safe-haven assets.

European markets also recorded gains, with London’s FTSE 100 rising by 0.2 per cent, Germany’s DAX gaining almost 0.6 per cent, France’s CAC 40 advancing by 0.4 per cent and Italy’s FTSE MIB climbing by nearly 1.4 per cent.

Banking and clean energy stocks, which have faced pressure under Trump’s policies, were among the major beneficiaries of the market rally. European bank shares gained 2.8 per cent, while Denmark’s Vestas Wind Systems rose by nearly five per cent and Ørsted gained 7.4 per cent.

Gold, another traditional safe-haven investment, also climbed by 2.2 per cent, moving above $4,000 per ounce.

However, technology-related shares, particularly those linked to artificial intelligence, experienced losses in Asian trading amid expectations that the incoming Democratic-controlled Congress could intensify regulatory scrutiny of the sector.

Chris Turner, global head of markets at ING, said investors were assessing the possible implications of the election for artificial intelligence investment and infrastructure development in the United States.

He noted that the Democratic Texas gubernatorial candidate, Gina Hinojosa, had campaigned for an immediate moratorium on data centre construction, raising concerns about the future of AI-related capital expenditure.

The market reaction also affected companies associated with billionaire entrepreneur Elon Musk, a major financial supporter of Republican-aligned political groups during the election.

According to market analysts, the possibility of increased congressional scrutiny of artificial intelligence companies and other sectors closely associated with the Trump administration could influence investment decisions in the coming months.

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