Bulletin
Investor Alert

Europe Markets Archives | Email alerts

Sept. 27, 2021, 8:07 a.m. EDT

German stocks climb after election

new
Watchlist Relevance
LEARN MORE

Want to see how this story relates to your watchlist?

Just add items to create a watchlist now:

  • X
    Germany 10 Year Government Bond (TMBMKDE-10Y)
  • X
    DAX (DAX)
  • X
    FTSE 100 Index (UKX)

or Cancel Already have a watchlist? Log In

By Steve Goldstein

German stocks rose after Social Democrats captured the biggest share of the vote in a close contest, beating the center-right bloc led by outgoing Chancellor Angela Merkel.

The result is likely to result in the SPD party led by Olaf Scholz heading a government, though the alliance led by Armin Laschet also could lead the government. A so-called traffic light coalition, with the SPD, the Greens and the pro-business Free Democrats, is seen as the most probable outcome.

“The conservative CDU/CSU and the social-democrat SPD have come out almost neck and neck in Germany’s federal election, meaning either one has the potential to lead a likely moderate coalition government. The left-wing Die Linke party’s poor election showing appears to have ruled out a left-wing alliance, and its likely negative impact on German stocks,” said analysts from the BlackRock Investment Institute.

A second question is just how long it will take for a coalition to be reached. “This time around, there might be some pressure not to dilly-dally for quite as long through the middle of the second pandemic winter, during which voters might insist on having a democratically legitimized government capable of acting,” said Martin Moryson, chief economist for Europe at DWS.

The yield on the 10-year bund /zigman2/quotes/211347112/realtime BX:TMBMKDE-10Y +5.35% wobbled, and recently rose to -0.21% from -.23%.

The German DAX /zigman2/quotes/210597999/delayed DX:DAX -0.21% rose 0.6%, while the U.K. FTSE 100 /zigman2/quotes/210598409/delayed UK:UKX +1.04% rose 0.1% and the French CAC 40 /zigman2/quotes/210597958/delayed FR:PX1 +0.94% added 0.4%.

The euro /zigman2/quotes/210561242/realtime/sampled EURUSD -1.0265% fell to $1.17 from $1.1721.

The biggest Stoxx 600 advancer was Rolls-Royce /zigman2/quotes/203646520/delayed UK:RR +0.31% , as the aerospace engine maker reached a 30-year contract to power the B-52 program from the U.S. Air Force, and separately said it would sell its ITP Aero unit for €1.7 billion to a consortium led by Bain Capital.

/zigman2/quotes/211347112/realtime
add Add to watchlist BX:TMBMKDE-10Y
BX : Tullett Prebon
2.19
+0.11 +5.35%
Volume: 0.00
Feb. 3, 2023 6:00p
loading...
/zigman2/quotes/210597999/delayed
DAX
DX : Xetra Indices
15,476.43
-32.76 -0.21%
Volume: 0.00
Feb. 3, 2023 6:30p
loading...
/zigman2/quotes/210598409/delayed
UK : FTSE UK
7,901.80
+81.64 +1.04%
Volume: 620,645
Feb. 3, 2023 4:55p
loading...
/zigman2/quotes/210597958/delayed
FR : France: Euronext Paris
7,233.94
+67.67 +0.94%
Volume: 89,988
Feb. 3, 2023 6:05p
loading...
/zigman2/quotes/210561242/realtime/sampled
US : Tullett Prebon
1.0799
-0.0112 -1.0265%
Volume: 0.0000
Feb. 3, 2023 4:59p
loading...
/zigman2/quotes/203646520/delayed
UK : U.K.: London
109.08 p
+0.34 +0.31%
Volume: 16.83M
Feb. 3, 2023 4:35p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
£9.10 billion
Rev. per Employee
£264,977
loading...

Get news alerts on Euro — or create your own.
This Story has 0 Comments
Be the first to comment
More News In
Markets

Story Conversation

Commenting FAQs »

Partner Center

Link to MarketWatch's Slice.