European markets extended their gains at midday, with major indexes near their session highs as U.S. stock futures climbed. Milan rose 2.3%, while Madrid led the region with a 2.9% gain. Frankfurt and Paris were up 1.5%, and London added 1.2%. Nasdaq futures gained 0.9%, while Dow Jones futures rose 1.5%.
George Savarelos, Deutsche Bank’s head of foreign-exchange research, said a broad Democratic majority in Congress, alongside President Donald Trump’s stated willingness to work with the opposition, could constrain extreme policy outcomes and reduce risk premiums. He added that markets may increasingly view unexpected moves by the administration as limited by future elections or changes in the domestic political landscape.
Market optimism was also supported by Trump ruling out imminent plans to attack Iran. Oil prices fell, with U.S. crude down 1% to $95.10 a barrel and Brent down 1.3% to $102.20. Lower energy tensions and expectations that Democrats will constrain Trump’s fiscal policies helped government bonds, pushing yields down. U.S. Treasury yields fell three basis points to 4.92%, while Italian 10-year yields declined four basis points to 4.419%.
The dollar weakened against other currencies, losing 0.5% against the euro, which traded at $1.125. The report linked the decline to concerns that political conflict in the United States and Democratic scrutiny of data centers and artificial intelligence could slow growth. Gold rose 3.5% to $4,040 an ounce, supported by expectations of a less restrictive interest-rate environment.
Banks led gains in Milan: UniCredit and Intesa rose 5.2%, while Buzzi, BPER and MPS each advanced 4.8%. Banks were also Europe’s strongest sector, with the Stoxx sector index up 4.4%. Semiconductor stocks fell 0.6% as investors assessed how the vote could affect AI investment. Defense shares also lagged after benefiting from Trump’s polarizing policies.
Sources: ANSA Economia.