European Bank Shares Advance After Democrats Triumph in U.S. Midterms

By Michael Hennessey

European bank stocks climbed Wednesday after Democrats won control of both chambers of Congress in the U.S. midterms, boosting expectations of a check on the power of the executive branch.

The Stoxx Europe Banks index rose 3.7%. The biggest gainers in the sector included Germany's Deutsche Bank, which advanced 4.9%, while Commerzbank climbed 4.4%. In Italy, Intesa Sanpaolo stock was 4.6% higher while UniCredit rose 4.5%.

Spain's Banco Santander advanced 4.1%, while Dutch bank ING was up 3.7%. In France, Societe Generale increased 4.1% and BNP Paribas climbed 3.7%. In the U.K, Standard Chartered was up 4.1% and Barclays advanced 3.5%.

The Democratic victory prompted investors to rotate into stable banks that have lagged the broader market this year, and away from defense and technology.

"Theoretically, a divided government can create gridlock for policy changes, but there is a school of thought that Democrats may prioritize pushing through AI regulation," AJ Bell's Russ Mould said.

"A positive market reaction implies that certain investors are welcoming the potential that Trump's political power may be curbed somewhat," the analyst added.

Write to Michael Hennessey at michael.hennessey@wsj.com

(END) Dow Jones Newswires

November 04, 2026 05:28 ET (10:28 GMT)