European shares rise as Democrats take US Congress, Novo Nordisk surges
Investors rotate into domestically-focused banks that lagged the broader market for much of 2026
Published Wed, Nov 4, 2026 · 05:14 PM
[BENGALURU] European shares rose on Wednesday (Nov 4), lifted by banks and clean energy stocks after Democrats won control of both chambers of the US Congress, while Wegovy maker Novo Nordisk surged on an upgraded annual forecast.
The pan-European Stoxx 600 index advanced nearly 1 per cent by 0927 GMT. Lenders-focused benchmarks in Italy and Spain climbed 2.2 per cent and 1.6 per cent, respectively.
Euro Stoxx banks was the top-performing sector, up nearly 4 per cent as investors rotated into domestically-focused lenders that have lagged the broader market for much of 2026. Analysts also pointed to European lenders potentially facing less scrutiny.
“The fact that Congress is now in the hands of Democrats means that the ability for the US administration to impose any sort of requirements or sanctions on European banks in the US is limited,” said Michael Field, chief equity market strategist EMEA, Morningstar.
Field added that the win could also mean a swift resolution to the Iran conflict, lower inflation and interest rates, which would benefit lenders that are treading a fine line between the benefits and risks of high interest rates.
Stoxx futures fell as much as 1.4 per cent earlier on Wednesday and then recovered after Democrats captured majorities in both the Senate and House. Investors also took comfort after US President Donald Trump accepted the election results.
Clean energy stocks that have borne the brunt of Trump’s policies were the biggest gainers. Vestas jumped 4 per cent, Orsted gained 6.7 per cent and Nordex surged 5.3 per cent.
Novo Nordisk advanced 4.2 per cent after the Wegovy maker reported third-quarter adjusted operating profit above expectations and raised its full-year sales and profit forecasts.
Tech stocks were choppy as investors weighed the likelihood of stricter oversight by Democrats on artificial intelligence companies in the face of strong forecasts from US chip firm Advanced Micro Devices.
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Infineon was flat and ASML slipped 1.3 per cent, while AI equipment makers including Siemens Energy and Schneider Electric shed 2.7 per cent and 1.1 per cent, respectively.
Investors also digested earnings reports from a slew of companies.
Continental gained 6.7 per cent after the car parts maker raised its 2026 profitability outlook, while Heidelberg Materials advanced 9 per cent after the building materials maker reported higher-than-expected sales for the third quarter.
The defence sector was the top laggard, down about 1 per cent. On the data front, Eurozone flash consumer inflation for October is due at 1000 GMT. REUTERS
