European equities surged toward all‑time highs Thursday after Democrats secured a decisive midterm victory, signaling tighter constraints on Trump’s protectionist policies and easing inflation worries. The Stoxx Europe 600 rose 0.7%, building on a 1.8% jump, while Germany’s Dax hit a record high, up 1% after a 2.2% gain. Oil prices rebounded, with Brent crude climbing 2.1% to $96.61, on hopes a constrained White House could end the Iran conflict.
Analysts said a Democrat‑led Congress reduces tariff risks, benefiting Europe and emerging markets. The rally reflects a rotation away from tech and chip stocks toward broader market segments, with investors reallocating from Asian emerging markets to Europe. European government bonds also rallied, with French 10‑year yields falling to 4.75%.
The euro steadied at $1.122, while U.S. futures were mixed.
Source: Financial Times Markets · Summarized by HeadlinesBriefing