Shares of Bermuda’s re/insurers and shipping companies moved in opposite directions today as financial markets reacted to the US mid-term election results.

After both the House of Representatives and the US Senate flipped to Democratic Party control, the S&P 500 Index climbed 1.6 per cent, while the Dow Jones Industrial Average rose more than 3 per cent.

US Treasury bond yields fell, along with crude oil prices, which plunged more than 7 per cent.

The island’s re/insurers largely joined the equity rally, with White Mountains Group soaring 3.8 per cent, Pelagos up 4.9 per cent, Arch Capital gaining 2.7 per cent, Everest Group up 2.6 per cent, RenaissanceRe up 2 per cent, and Hamilton rising 2.2 per cent.

However, the island’s oil tanker operators and shipping companies had a major down day. Teekay Corporation dipped 4.9 per cent and Teekay Tankers plunged more than 7 per cent, while Nordic American Tankers and SFL Corporation both dived around 5 per cent.

Goldman Sachs strategist Jan Hatzius issued a note, explaining his take on the post-election stock market action after the Democrats seized control of the US Congress.

“The larger-than-expected majorities could give them slightly greater leverage in negotiations with the White House, but will also dilute the influence of small factions within the Democratic caucus,” Mr Hatzius wrote.

“We expect Democrats to use fiscal deadlines to seek to limit the war with Iran, roll back selected tariffs, and reverse spending cuts enacted last year.”