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

Novartis AG

Wed 08:04

Updates after markets open
Nov 4 (Reuters) - European shares rose on Wednesday with banks and clean energy stocks among top gainers after Democrats won control of both chambers of the US Congress, while Wegovy maker Novo Nordisk surged after raising its annual forecasts.
The pan-European STOXX 600 index .STOXX gained 0.5% by 0816 GMT, with Germany's DAX .GDAXI and France's CAC 40 .FCHI also higher. Italy's benchmark FTSE MIB .FTMIB outperformed with a 1.2% gain.
Banks .SX7E were among the top-performing sectors, climbing more than 2% as investors rotated into domestically focused lenders that have lagged the broader market for much of the year.
STOXX futures fell as much as 1.4% earlier in the day before recovering after Democrats captured majorities in both the Senate and House. Investors also took comfort after US President Donald Trump accepted the election results.
Clean energy stocks that have borne the brunt of Trump's policies were the biggest gainers. Vestas VWS.CO jumped 5%, Orsted ORSTED.CO gained 7% and Nordex NDXG.DE surged 4.7%.
Novo Nordisk NOVOb.CO advanced 4.6% after the Wegovy maker reported third-quarter adjusted operating profit above expectations and raised its full-year sales and profit forecasts.
Tech stocks .SX8P also recovered from early declines to trade 0.4% higher. Strong forecasts from US chip company Advanced Micro Devices AMD.O offset concerns that stricter oversight by Democrats could make AI companies more cautious about spending on the technology.
Infineon IFXGn.DE and ASML ASML.AS climbed more than 1.1% each, while AI equipment makers including Siemens Energy ENR1n.DE and Schneider Electric SCHN.PA were marginally higher.

 (Reporting by Johann M Cherian in Bengaluru; Editing by Sherry Jacob-Phillips and Subhranshu Sahu)
 ((johann.mcherian@thomsonreuters.com))