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Europe closes sharply higher after Republicans win

European shares closed sharply higher on Wednesday, after investors learn that the Republican Party had won control of the U.S. Senate in the mid-term elections.

All major European indexes closed over 1.0 percent higher, with exception of the Spanish IBEX, which ended around 0.9 percent higher.

The U.K. FTSE 100 closed provisionally 1.2 percent, while the German DAX was up 1.6 percent and the French CAC was 1.9 percent higher.

The Italian benchmark FTSE MIB index outperformed, closing around 2.5 percent higher.

U.K. retailer Marks & Spencer one of Europe's top gainers after it posted improved sales. and Portuguese stocks both climbed over 2 percent

Read MoreM&S womenswear and dividend boost shares

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Price
 
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FTSE
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DAX
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CAC
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IBEX 35
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Shares in the U.S. and Europe were boosted by the news that the Republican Party has taken control of the Senate. Republican Senate candidates picked up Democratic seats in Montana, Colorado, West Virginia, South Dakota and Arkansas—giving them the gains necessary for a majority in the 100-member chamber.

U.S. midterm elections are historically associated with healthy equity returns, as investors embrace the certainty, at least in the short term, the results bring. Experts told CNBC that a GOP-controlled Senate would look to pursue several legislative goals, including tax reform and energy infrastructure bills.

Wall Street was also boosted by data that showed private employers added 230,000 jobs last month, more than estimated and the largest gain since June. The Dow Jones Industrial Average rose to an intraday record after the news.

Weak economic data for the euro zone did little to dent sentiment. Markit reported that business growth in the region slowed more than expected in October and the number of jobs declined for the first time in almost a year.

M&S surges

In individual stock news, shares in Marks & Spencer (M&S) rocketed to close around 9.7 percent higher after the U.K. high street stalwart reported better-than-expected half-year results and improved sales in its crucial women's clothing business.

Shares of Dutch bank ING also outperformed, closing up around 2.8 percent. It reported pre-tax profits that beat expectations and were up on the same period last year.

However, financial services group Old Mutual said gross sales fell this year when compared to last, although assets under management rose 5 percent. Shares in the group closed around 0.2 percent higher after the results, underperforming the FTSE 100.

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