DAX hits record as AI stocks slide

Frankfurt's DAX index hit a record high on Thursday while AI-linked technology shares fell, as investors weighed Democrats' US midterm victory against concern over large artificial intelligence investments.

London's FTSE 100 moved close to an all-time high after Democrats defeated President Donald Trump's Republicans in the midterm elections. Tech-heavy Asian markets were weaker overall, with Seoul down more than five percent after a strong AI-led rally earlier in 2026.

Wall Street opened mixed. At about 1430 GMT, the Dow was up 0.6 percent, the S&P 500 was down 0.2 percent and the Nasdaq Composite was down 0.8 percent. The Philadelphia Semiconductor Index fell about five percent as trading began.

Oil prices recovered after falling as much as 10 percent on Wednesday on hopes of progress towards ending the US-Iran war if Democratic pressure increases for a diplomatic solution. Brent crude was up 2.9 percent at $97.35 a barrel, while West Texas Intermediate was up 1.8 percent at $89.70.

Susannah Streeter, chief investment strategist at Wealth Club, said investor concerns about escalation in the Middle East had eased after the Democratic midterm success, but that sentiment around AI-linked trades remained fragile because of an expected slowdown in data centre construction.

In Britain, the pound was little changed after the Bank of England raised its benchmark interest rate for the first time in more than three years, as expected, with inflation still elevated.

Air France-KLM shares rose more than 14 percent after the airline group reported higher third-quarter operating profit despite a higher jet fuel bill. Rheinmetall shares fell 15 percent after the German defence company cut its earnings outlook for a second time in several months following Berlin's cancellation of a major warship contract.

At about 1430 GMT, London's FTSE 100 was up 0.6 percent, the CAC 40 in Paris was up 1.2 percent and Frankfurt's DAX was up 0.6 percent. Tokyo's Nikkei closed down 1.8 percent, Hong Kong's Hang Seng closed up 3.7 percent and Shanghai's Composite closed up 0.1 percent.