European stocks rally as Democrats win US midterms; Ibex jumps 2%

The Ibex-35 rose 2.1% on Wednesday, recovering 19,200 points, as European markets reacted optimistically to the Democratic Party's decisive victory in the US midterm elections, which stripped President Donald Trump of Congress and Senate control. The Democratic win triggered a 0.5% dollar depreciation against the euro, boosting gold prices 2.9% above $4,000 per ounce. Spanish banks led gains, with Caixabank up 4.7%, Santander 3.7%, and BBVA 3.3%, while Indra fell over 4%. Other European indices also advanced, including Milan's 1.6% rise. Analysts attributed dollar weakness to reduced expectations of Trump's expansive fiscal policy, which could lower US debt pressure and Treasury yields. However, concerns emerged that new AI regulations and potential opposition to data center construction in traditionally conservative territories like Texas could slow economic growth in a sector driving global markets.