German market responds with rise after Sunday's elections
The German index started to gain half a point after the elections showed the victory of the Christian Democrats, who could form a coalition with the Socialists to govern.
HANNIBAL HANSCHKE/EPA via Lusa
Germany's DAX stock index has had a strong start to the week, boosted by the results of Sunday's election in the country, in which the CDU emerged as the big winner. The German stock market was up more than half a point at the start.
European markets began the day with timid gains, with the DAX standing out after the victory of the Christian Democrats in the German elections, a result that leaves room for a 'Grand Coalition' between the two largest traditional parties to govern the largest economy in the euro zone. Together with the CDU, the Socialists of incumbent Olaf Scholz should secure the majority needed to form a government with 29% and 16% of the votes, respectively, giving encouragement to the markets.
This would be the preferred solution for investors, given the failure of the three-party coalition that collapsed before this election.
The far right, through the AfD, managed to come in second place with 21% of the votes, according to figures released overnight.
Along the same lines, the single currency also appreciated after the election, meaning that domestic politics should no longer be such a significant driver for the currency.
jornaleconomico
