European Shares Surge Amid Trump Presidency and Republican Gains

European shares saw significant gains as markets reacted to Donald Trump's presidential election victory and Republican control of Congress. The STOXX 600 rose 1.2%, influenced by increased U.S. stock futures. Markets were impacted by Trump's trade policies and defense spending plans, affecting various sectors differently.

In a surprising turn of events, European shares rose sharply by over 1% on Wednesday, mirroring a rise in U.S. stock futures as Donald Trump was elected as the 45th President of the United States. The Republican Party also clinched control of at least one chamber of Congress, further boosting market activity.

With Trump securing over the 270 Electoral College votes needed, as projected by Edison Research, the pan-European STOXX 600 index gained 1.2%. U.S. stock futures, particularly those tracking the S&P 500, surged more than 2%, initiating catch-up buying in European equities, according to CMC Markets analyst Jochen Stanzl.

Trump's trade and defense policies have sparked market movements, particularly favoring European defense stocks, owing to his calls for reduced U.S. military support unless NATO members increase defense spending. Conversely, European renewable energy stocks like Oersted and Vestas faced pressure due to Trump's vow to stop offshore wind projects.

(With inputs from agencies.)