Sensex Soars 2,009 Points as Markets Rally (5 Nov)

Global markets react to U.S. midterm election results

Democrats secured control of both the U.S. Senate and the House of Representatives in the midterm elections. Investors are betting that a divided government in Washington will limit the potential for major policy shifts.

The Nasdaq Composite also increased by more than 1% following election results that gave Democrats control of the House, Senate, and several governorships.

At 6:24 a.m. ET on Wednesday, Dow E-minis were up 1.44%, or 748 points, while S&P 500 E-minis were up 1.04%, or 79 points. Dow futures later surged more than 300 points.

As of Thursday, Dow futures were set to open 1.11% higher, and European stock markets were expected to begin the session in positive territory. The tech-heavy Nasdaq-100 index had previously confirmed it entered a technical correction on Monday.

He stated, "We may be headed for more volatility as investors digest the election results and potential policy implications".

Technology sector sees mixed performance globally

Large technology companies saw gains, with Amazon jumping about 3%. Meta Platforms, Nvidia, and Alphabet each gained over 1% following the midterm election results.

The broader semiconductor sector saw gains, with Micron Technology, Broadcom, and Marvell Technology rising between 1% and 2%.

SolarEdge Technologies shares rose by 1.7%.

Shares of Tesla and Elon Musk-led SpaceX fell over 4% each following the election results.

Asian markets show varied performance

Asian stock exchanges reported mixed results at the close of Thursday trading. The Hang Seng index rose 3.61%, while the Hang Seng Tech index increased more than 5% due to a rally in Chinese tech heavyweights.

The CSI 300 index rose 0.29% to 4,113.41.

Japanese markets showed varying results, with the Topix rising 1.16% to 3,940.39. The Nikkei 225 index fell 1.79% to 61,077.9. Earlier in the day, reports indicated the Nikkei 225 gained 0.49% and the Topix rose over 2%.

South Korean markets saw declines, as the Kospi fell 5.28% to 5,383.8 and the Kosdaq dropped 5.11% to 678.41. Earlier trading figures showed the Kospi falling 2.33% and the Kosdaq dropping 1.24%.

Semiconductor stocks in Asia declined as investors reacted to the Democratic sweep in U.S. midterm elections and potential restrictions on AI infrastructure. South Korean chipmakers faced heavy selling pressure, with SK Hynix shares falling 9.03% and Samsung Electronics shares dropping 6.65%.

Commerzbank reports record nine-month results

Commerzbank reported a 45 percent year-on-year increase in third-quarter net profit to 859 million euros, or $967 million, with revenues rising 9 percent to 3.2 billion euros. Revenue growth resulted from higher interest income from deposits and corporate lending, alongside an increase in securities-related fees. For the first nine months of 2026, the bank reported a 17 percent rise in operating profits to 40 billion and a 41 percent increase in net profits to 2.7 billion, marking its best nine-month result on record. The third-quarter net interest income reached 2.1 billion, while the common equity tier 1 ratio was 14.2 percent, down from 14.4 percent in the second quarter.

Commerzbank expects to receive remaining regulatory approvals for its acquisition by UniCredit during the fourth quarter of 2026 or by early 2027. CEO Bettina Orlopp said, "We are convinced that together with UniCredit, we can create value by consistently leveraging the strengths of both banks".

Elsewhere in the markets, News Corporation reported first-quarter fiscal 2027 revenues of $2.28 billion, a 6 percent increase compared to the prior year. The company recorded a net income of $215 million for the same period, representing a 43 percent increase over the $150 million reported in the prior year. Rheinmetall shares fell as much as 16 percent on November 4, 2026, after the company cut its 2026 sales outlook to approximately 13.2 billion euros, or $14.9 billion, and its operating margin to around 18.5 percent due to military contract and ammunition testing delays.

Maersk raises full-year profit guidance

This outlook shift follows a 46 percent increase in average freight rates, which the company attributed to the Strait of Hormuz closure, weather conditions, and congestion.

Indonesia's economy grows by 5.47%

Indonesia's economy expanded by 5.47 percent in the third quarter year-on-year, exceeding the 5.18 percent forecast by economists and the 5.29 percent growth recorded in the previous quarter. Growth was supported by government spending and activities in the food service and accommodation sectors.

NextDC shares surge on acquisition interest

The two firms conducted an aftermarket bookbuild on Wednesday to seek shares at a price of A$9.50 each. The NextDC board labeled the acquisition attempt as "opportunistic".

Diageo reports small sales increase

Diageo reported a 1.2 percent year-on-year increase in net sales to $4.9 billion for the first quarter. CEO Sir Dave Lewis described the results as a "small step in the right direction" despite geopolitical uncertainty.