European shares rise as Democratic sweep lifts clean energy, bank stocks

European shares climbed on Wednesday (Nov 4) as Democrats secured control of both chambers of the US Congress. Banks and clean energy stocks led the gains among top-performing sectors. The Stoxx 600 index increased 0.5 percent by 0816 GMT, with Germany's DAX and France's CAC 40 also up. Italy's FTSE MIB led the rally, gaining 1.2 percent.

Banks experienced a notable surge, with their shares rising more than 2 percent as investors rotated into domestically-focused lenders that had underperformed the broader market for most of 2026. Clean energy stocks, which suffered due to Trump's policies, saw the most significant gains. Vestas rose 5 percent, Orsted climbed 7 percent, and Nordex surged 4.7 percent.

Novo Nordisk posted a higher-than-expected third-quarter operating profit and increased its annual sales and profit forecasts, resulting in a 4.6 percent rise in its share price. Tech stocks also recovered, recovering from early declines to trade 0.4 percent higher. Advanced Micro Devices' strong forecasts counteracted worries that stricter regulation by Democrats might deter artificial intelligence companies from investing in the technology.

Semiconductor firms Infineon and ASML both climbed more than 1.1 percent, while AI equipment makers, including Siemens Energy and Schneider Electric, were marginally higher.