FTSE 100 Rallies as European Stocks Jump After US Midterms
European stock markets closed sharply higher on Wednesday 4 November, as investors reacted to the Democrats winning control of both chambers of the US Congress in the midterm elections. Banks led the advance, while oil and gas shares fell as crude prices slid.
In London, the FTSE 100 had already risen 110.52 points, or 1.0%, to 10,748.95 by midday, according to Alliance News via the London Stock Exchange, and it strengthened further into the close. The Edge's closing wrap put the FTSE 100 at 10,829.21, up 1.79% on the day, with the FTSE 250 also higher at midday.
Banks lead, Madrid tops the board
Spain's IBEX 35 led the nine European indices tracked by The Edge, jumping 3.00% to 19,370.90. Germany's DAX closed 2.22% higher at 26,437.67, Italy's FTSE MIB rose 2.18% to 51,031.02, and France's CAC 40 gained 1.96% to 8,177.89. No index tracked fell on the day.
The Stoxx Europe 600 banks index rose 4.32%, the strongest of the sectors tracked, while the wider Stoxx Europe 600 gained 1.82% to 657.40. Reuters reporting, carried on 4 November, put banking stocks up 4.3% and on course for their biggest one-day gain in nearly six months, with precious-metal miners up nearly 6.2%.
Why markets moved — and why caution remains
Alliance News quoted J Safra Sarasin economist Raphael Olszyna-Marzys as saying the decisiveness of the result removed some of the risk premium a disputed outcome would have placed on asset prices, while warning the result "should not be overread" because President Donald Trump can veto legislation. Eurozone inflation also featured in the session: preliminary Eurostat figures put consumer prices up 4.0% year on year in October, from 3.8% in September, the highest since September 2023.
Market news is not investment advice, and a single day's rally does not by itself signal a lasting trend.
Sources: The Edge, Europe Market Wrap 4 November 2026; Alliance News via London Stock Exchange, London Market Midday, 4 November 2026; Reuters via 94.3 Jack FM, FTSE 100 climbs 1% on banks, miners boost, 4 November 2026.
