European stock markets shift following Democratic midterm victory in United States

The Democratic Party won control of both the House of Representatives and the Senate in the United States midterm elections last week, according to Euronews. The result, which Euronews reported was termed the blue tsunami on trading floors, represented a defeat for President Donald Trump halfway through his second presidential term. [1][8]

European stock markets experienced a sharp rotation in reaction to the election outcome. Euronews reported that banking stocks rallied while semiconductor stocks fell due to concerns regarding data centres. The Stoxx 600 index rose by 1.8 percent on Wednesday before giving back most of the gains to end Friday 0.4 percent above its Tuesday level. [1]

All 435 seats in the House of Representatives and 35 seats in the Senate were contested in the midterms, as FTMQ News reported earlier. As FTMQ News also reported earlier, political analyst Bruce Stokes described the midterm election outcome as the biggest wave in 50 years. [8][10]

Separately, Fox News reported that President Donald Trump suggested a potential deal with Russia to end the war in Ukraine could involve all of Europe. Fox News also reported that retired General Philip Breedlove warned Russia seeks to divide the world into spheres of influence, while Ukrainian President Volodymyr Zelenskyy rejected a potential Yalta 2.0 deal. [2]