European shares jump over 1% after Democrats sweep US Congress, Novo Nordisk surges
Published Thu, Nov 5, 2026 · 06:02 AM
THE European equity benchmark closed at a more than two-month high on Wednesday (Nov 4) in broad-based gains 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 ended 1.82 per cent higher at 657.40 points, its highest since Aug 26 and marking its steepest one-day gain since Jun 12. Lender-focused Spanish benchmark climbed 3 per cent, the most among regional bourses.
“The market always tends to go up after the midterms in the short, super short term … whether it’s going to be a lasting move is a different story. Growth still looks good … we’ve seen for the last few days, oil prices come off. So there’s room for the market to move,” said Toni Meadows, head of investment at BRI Wealth Management.
Euro Stoxx banks climbed 4.6 per cent, leading sector-wide gains, making the steepest one-day jump since early April as investors rotated into domestically focused lenders that have lagged the broader market for much of the year. 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, at Morningstar.
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 among the other gainers. Vestas jumped 2.9 per cent, Orsted gained 4.6 per cent and Nordex surged 4.8 per cent.
Novo Nordisk advanced 5.6 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 fell 0.2 per cent as investors weighed the likelihood of stricter oversight by Democrats on AI companies in the face of strong forecasts from US chip firm Advanced Micro Devices.
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Infineon, ASML and Soitec slipped between 3.4 per cent and 11.8 per cent, while AI equipment makers including Siemens Energy and Schneider Electric shed 8 per cent and 3.4 per cent, respectively.
Investors also sifted through a raft of upbeat corporate earnings.
Heidelberg Materials advanced 9.6 per cent after the building materials maker reported higher-than-expected sales for the third quarter, while Pandora gained 10.9 per cent after the jewellery maker posted a third-quarter EBIT beat.
The oil sector was the leading laggard tracking an 8 per cent fall in Brent crude, down 2.4 per cent.
On the data front, euro zone inflation rose to a three-year high last month, increasing the chance for another European Central Bank rate hike in December. REUTERS
