Europe open: Shares jump, oil falls after Republicans crushed in US midterms

5th Nov 2026 07:47

(Sharecast News) - European shares were higher and oil prices fell sharply at the open as the crushing defeat for the Republicans in the US midterm elections boosted hopes that President Donald Trump may look for a way out of his war on Iran.

The pan-regional Stoxx 600 index nudged towards record territory, gaining 0.55% to 661 at 0816 GMT with al major bourses higher. Britain's FTSE 100 rose 0.84% ahead of an expected rate rise from the Bank of England later in the day.

Brent crude plunged below the $100 mark after Trump's defeat with the benchmark down to $95 a barrel, although still well above the $72 mark when the US and Israel started their war of choice on Iran and Lebanon.

US shares surged overnight after Americans overwhelmingly rejected Trump and the Republican party, handing control of the House of Representatives and Senate to the Democrat Party.

"Global equity markets mostly welcomed the strong win by Democrats, with European and Chinese markets surfing on hopes that the Democratic shift in Congress could increase pressure to undo some tariffs and restore stronger trade ties with the US (although an improvement in trade relations remains a possibility rather than a certainty)," said Swissquote analyst Ipek Ozkardeskaya.

In equity news, shares in Rheinmetall plunged as the German defence giant cut its full year guidance, blaming contract delays.

Aker BP also fell sharply after BP sold a 5% stake in the Norwegian oil and gas producer for more than $1bn, as the British energy giant looks to strengthen its balance sheet through asset disposals.

Maersk shares were down despite the Danish shipping group raising its 2026 profit guidance for a third time.

BT Group rose after the UK telecoms group reported annual results.

Reporting by Frank Prenesti for Sharecast.com