Democratic sweep of US Congress sends European bank stocks surging! Fiscal easing and cooling US Treasury yields ignite market sentiment.

Zhitong Finance APP has learned that the Democrats sweeping the U.S. Congress has weakened market bets on further expansion of U.S. military spending, while boosting European bank stocks' expectations for an improved financing environment and credit outlook. The day's market structure also highlighted the rotation of Western policy expectations, with the pan-European STOXX 600 index rising nearly 1%, led by the banking and clean energy sectors, while defense stocks clearly lagged. Capital is being reallocated toward bets on different paths and directions of Democratic policy beneficiaries under the backdrop of a Democratic sweep of Congress.