European shares are seeing a strong rally. The FTSE 100 index in London has climbed 207 points to 10,845, marking a gain of nearly 2%.
The Dax in Frankfurt has risen by a similar margin, while French and Italian markets have jumped more than 2%, and the Spanish index has surged 3.2%.
The pan-European Stoxx 66 index has posted a 1.8% gain.
Banking and clean energy stocks were among the top performers, while defense stocks saw sharp declines on both sides of the Atlantic—including in US pre-market trading—as Donald Trump’s $1.5 trillion budget request for the Pentagon is expected to face significantly more scrutiny in Congress. The UK’s BAE Systems, which derives nearly half of its revenue from the US, fell almost 6% earlier and is currently down nearly 2%.
Wall Street is projected to open higher in less than half an hour, following sweeping victories for Investors are hopeful that this shift will limit Donald Trump’s ability to implement abrupt policy changes and help restrain government spending and borrowing.
The yield on the benchmark 10-year UK gilt has dropped 6 basis points to 5.18%, while the corresponding US Treasury yield has declined 5.1 basis points to 4.91%.
Oil prices have fallen sharply, helping to ease inflation concerns, with Brent crude sliding toward $100 a barrel. It is currently trading down $2.72, or 2.67%, at $100.87 a barrel, as markets wait for Washington’s next move regarding Iran.
Eurozone yields ticked upward after inflation in the region reached 4% last month, the highest level in three years and an increase from 3.8% in September.
The core inflation rate, which excludes <a expectations according to the flash estimate from Eurostat, the eurozone’s statistics office.
The dollar weakened by 0.5% against a basket of major currencies, pressured by expectations of increased regulation within the booming AI sector, which could potentially lead to slower economic growth.
Spot gold, often viewed as a safe-haven asset, jumped 2.9% to $4,041 an ounce.
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