Strong gains for European stocks after Democrats win US Congress elections

European stock exchanges ended Wednesday's trading with broad gains, driven by the Democrats' victory in controlling both chambers of the US Congress and the rise of major company shares, notably Novo Nordisk. The Stoxx 600 index rose 1.82%, the banking index jumped 4.6%, while technology stocks fell 0.2% due to concerns over AI regulation.

European stock exchanges ended trading on Wednesday, November 4, 2026, with broad gains, driven by the Democrats' victory in controlling both chambers of the US Congress, along with the rise of major company shares, most notably Novo Nordisk, the producer of the Wegovy drug, according to Reuters. The European Stoxx 600 index rose 1.82% to close at 657.40 points, its highest level since August 26 and its largest daily gain since June. The Spanish IBEX index rose 3%, leading European market gains. The banking sector was among the top gainers, with its index jumping 4.6%, its largest daily increase since early April. Novo Nordisk shares rose 5.6% after the company announced third-quarter operating results that exceeded expectations. In contrast, technology stocks fell 0.2% amid investor concerns that Democratic control of Congress could lead to stricter regulation of artificial intelligence companies. Shares of Infineon, ASML, and Soitec fell between 3.4% and 11.8%. Reuters quoted Tony Meadows, chief investment officer at PRI Wealth Management, as saying that markets typically tend to gain after US midterm elections. On the economic indicators front, inflation in the eurozone rose last month to its highest level in three years.