European Stock Markets Close at Highest Level in Over 2 Months Following U.S. Democratic Victory

Key summary

European stock markets closed at their highest level in over 2 months on Wednesday (November 4th). The STOXX 600 index closed at 657.40 points, up 11.74 points, or +1.82%. The French CAC-40 closed at 8,177.89 points (+1.96%), the German DAX closed at 26,437.67 points (+2.22%), and the London FTSE 100 closed at 10,829.21 points (+1.79%). The victory of the Democratic Party in the U.S. Senate and House of Representatives led to a surge of 4.6% in banking stocks, the best daily performance since early April. Clean energy stocks such as Vestas (2.9%), Orsted (4.6%), and Nordex (4.8%), as well as Novo Nordisk (+5.6%), also rose. Technology stocks, however, fell by 0.2% due to concerns about AI regulation. Inflation in the Eurozone reached its highest level in 3 years in October, raising the possibility that the European Central Bank may raise interest rates again in December.