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Investment Daily: US stocks and Treasuries rose after midterm election results

5 November 2026

Key takeaways

  • US stocks and Treasuries rose.
  • European stocks and government bonds rose.
  • Asian stocks mostly rose.

Markets

US stocks rallied on Wednesday as investors digested the midterm election results. The S&P 500 closed 1.6% higher

US Treasuries advanced as oil prices declined. 10-year yields fell 7bp to 4.89%.

European stocks rose on Wednesday after the US midterm election results. The Euro Stoxx 50 closed 2.0% higher. The German DAX rose 2.2% and the French CAC gained 2.0%. In the UK, the FTSE 100 increased 1.8%.

European government bonds rallied (yields fell). 10-year German bund yields fell 6bp to 3.27%, and 10-year French bond yields dropped 18bp to 4.77%. In the UK, 10-year gilt yields decreased 13bp to 5.13%.

Asian stock markets traded mixed but mostly higher on Wednesday, as AI-related shares recovered from early losses with investors weighing the initial results of the US midterm elections. Japan’s Nikkei 225 declined 1.4%, while South Korea’s Kospi ended 0.6% higher. Chinese equities rose amid growing optimism about policy support and buyback plans announced by major companies. The Shanghai Composite and Hong Kong’s Hang Seng Index gained 2.2% and 1.7%, respectively. Elsewhere, India’s Sensex advanced 0.5%.

Crude oil prices fell further on Wednesday amid growing hopes of geopolitical de-escalation. WTI for December delivery settled 8.3% lower at USD88.1. 

Key Data Releases and Events

Releases yesterday

In the US, the ISM services index edged down to 54.5 in October from 54.9 in September, signalling continued expansion, albeit at a slower pace.

In the Eurozone, headline inflation rose to 4.0% yoy in September, from 3.8% in August fuelled by a surge in energy prices.

Releases due today (5 November 2026)

The Bank of England is expected to increase interest rates to 4.00%, given more resilient growth, rising oil prices and increasing upside risks to inflation.

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