Comment: US election could lead to best of all worlds for markets

With the Republicans on course to retain control of the Senate there will be no mandate for a bold Democratic agenda

Any policies that are enacted will have to win at least some bipartisan support. Compared to the earlier expectations of a blue wave, markets view this scenario as grounds for celebration. Picture: Getty

Even though uncertainty about the outcome of the US presidential election is likely to drag on, the stock market has been rallying. Provided that the election is decided within weeks – rather than months – and that both candidates ultimately accept the outcome as legitimate, business sentiment and household optimism can be expected to remain robust.

Indeed, the only surprise this week is how close the Electoral College contest turned out to be. The delay ...