European Stocks Rally Amid US Election Developments

European stock markets opened higher today. This rise followed gains in U.S. stock futures after Donald Trump declared victory in the presidential election and the Republican Party secured control of at least one chamber of Congress. Fox News announced Trump as the winner against Democrat Kamala Harris, while other news outlets have yet to confirm the result.

The STOXX 600 index rose by 1.1% as of 11:10 AM GMT, with the healthcare sector leading with a 2.6% increase. Shares of Novo Nordisk, a company specializing in weight loss and diabetes medications, experienced a significant jump of 7.4%. This increase came after the company's Wegovy weight loss drug sales surpassed expectations and it provided a narrowed forecast for 2024.

S&P 500 futures also saw an increase of up to 1.8%. According to Edison Research, Trump's success in key swing states like North Carolina, Georgia, and Pennsylvania contributed to positive market sentiment.

However, shares of European renewable energy companies fell, with Oersted and Vestas losing over 10% in value. This decline followed Trump expressing intentions earlier this year to halt offshore wind energy development. Consequently, the broader utilities sector experienced a drop of 1.3%.

The market is also assessing Trump’s policies, which are viewed as potentially leading to overall inflation and possibly resulting in higher U.S. interest rates.

In other market news, German automotive manufacturer BMW's share price fell by 6.1%. This decline came after the company reported a 61% drop in third-quarter profits, failing to meet analyst expectations. On the other hand, Siemens Healthineers' shares rose by 8.1% after it announced revenue growth and pre-tax adjusted earnings in line with market forecasts.