SHARE prices soared last night on Wall Street, where investors were convinced the Republican Party would hold on to Congress and serve as a counterweight to an expected presidential win for Mr Bill Clinton.
"The Republicans will retain control of Congress and all will be right with the (financial) world. That's the view of stock and bond investors," commented the Wall Street Journal.
The Dow Jones index rose 39.5 points, or 0.65 per cent, to 6,081.18, just short of its record 6,094.23 on October 18th.
For the investment community maintaining the status quo in Washington would mean the continuation of a particularly favourable climate. Since Republicans became the majority party in Congress after 1994 mid-term elections, followed by President Clinton's high-profile commitment to a balanced federal budget, the New York Stock Exchange has risen 65 per cent and interest rates have come down more than a point and a half.
The only potential cloud on the horizon has been the possibility of the Democrats regaining control of one or both houses of Congress. The markets' fear then would be that Clinton might veer off centre and away from reform of the welfare state.
Such concerns intensified last week when Mr Clinton's substantial lead in the opinion polls over Mr Dole was seen as giving a boost to Democratic congressional candidates. But the gap narrowed over the weekend and tension eased on Wall Street.
"He clearly has slipped," said Greg Valliere, an analyst at Charles Schwab research group "If he doesn't get 50 per cent, I think the markets will be pleased. The Republicans' chances of winning both houses have gone up considerably."