London (AFP) - Stock markets diverged Thursday as traders weighed President Donald Trump’s hefty defeat in the US midterm elections against lingering concerns about huge AI investments.

Frankfurt’s DAX index hit a record high and London headed close to a new all-time peak after the Democrats’ stunning victory over Trump’s Republicans spurred investor optimism.

But tech-heavy Asian stock markets slid overall, with Seoul, the poster child of the AI-led surge in the first half of 2026, shedding more than five percent.

Wall Street opened mixed, with the broad S&P and tech-heavy Nasdaq sliding following strong gains on Wednesday.

Oil prices recovered after plunging as much as 10 percent on Wednesday on hopes of progress towards ending the US-Iran war in case of increased Democratic pressure for a diplomatic solution.

“A release valve has been unscrewed following the Democratic success of the midterms, with pent-up concerns about an escalation of the war in the Middle East evaporating,” said Susannah Streeter, chief investment strategist at Wealth Club.

“But sentiment around the AI trade remains fragile, with an expected slowdown in the data centre build-out still acting like a drag on the big tech sector players.”

The Philadelphia Semiconductor Index, which includes the global heavyweights in the AI-related industry, fell around five percent as trading began.

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

Away from AI and Trump, shares in Air France-KLM climbed over 14 percent after the carrier surprised investors with higher operating profit in the third quarter despite a soaring jet fuel bill.

Rheinmetall plunged 15 percent as the German defence giant cut its earnings outlook for a second time in several months after Berlin pulled the plug on a major warship contract.

- Key figures at around 1430 GMT -

New York - Dow: UP 0.6 percent at 53,684.41 points

New York - S&P 500: DOWN 0.2 percent at 7,674.54

New York - Nasdaq Composite: DOWN 0.8 percent at 25,536.97

London - FTSE 100: UP 0.6 percent at 10,892.38

Paris - CAC 40: UP 1.2 percent at 8,276.31

Frankfurt - DAX: UP 0.6 percent at 26,596.06

Tokyo - Nikkei 225: DOWN 1.8 percent at 61,077.90 (close)

Hong Kong - Hang Seng Index: UP 3.7 percent at 24,796.98 (close)

Shanghai - Composite: UP 0.1 percent at 3,689.91 (close)

Brent North Sea crude: UP 2.9 percent at $97.35 per barrel

West Texas Intermediate: UP 1.8 percent at $89.70 per barrel

Euro/dollar: DOWN at $1.1216 from $1.1229 on Wednesday

Pound/dollar: DOWN at $1.3471 from $1.3473

Dollar/yen: DOWN at 158.48 yen from 158.49 yen

Euro/pound: DOWN at 83.27 pence from 83.35 pence

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