European Shares Rise as Investors React to U.S. Midterms
European stocks climbed Thursday led by basic resources and airline gains, while defense and tech shares fell amid U.S. election results and corporate forecast cuts.
European shares rose on November 5, 2026, with the STOXX 600 index climbing up to 0.7 percent to reach 661.99 points, nearly hitting an all-time high. Gains were led by the basic resources sector, specifically ArcelorMittal, which saw shares jump between 5 and 6 percent after reporting core profits that exceeded market expectations. Other contributors to the rally included Air France-KLM, which gained over 11 percent, and renewables firms Orsted and Nordex.
Market sentiment was bolstered by the results of the U.S. midterm elections. Investors expressed relief after Donald Trump acknowledged his defeat, anticipating that Democratic control of Congress could curb excessive fiscal spending and accelerate the end of the conflict in Iran. Brent crude prices remaining below $100 a barrel further supported the upward trend.
Conversely, defense and technology stocks faced significant pressure. Rheinmetall shares plunged between 14 and 16.5 percent after the company issued its second sales forecast cut in three months, citing slower approvals for artillery ammunition and delays in Germany's Arminius Boxer vehicle programme. Technology firms including ASML and Soitec declined as investors feared that a Democratic sweep in the U.S. could lead to stricter AI regulations and increased scrutiny of artificial intelligence infrastructure.
