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 +16.99% wobbled, and recently rose to -0.21% from -.23%.

The German DAX /zigman2/quotes/210597999/delayed DX:DAX -0.80% rose 0.6%, while the U.K. FTSE 100 /zigman2/quotes/210598409/delayed UK:UKX -0.04% rose 0.1% and the French CAC 40 /zigman2/quotes/210597958/delayed FR:PX1 -0.72% added 0.4%.

The euro /zigman2/quotes/210561242/realtime/sampled EURUSD -0.0529% fell to $1.17 from $1.1721.

The biggest Stoxx 600 advancer was Rolls-Royce /zigman2/quotes/203646520/delayed UK:RR -2.40% , 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
-0.31
+0.06 +16.99%
Volume: 0.00
Dec. 8, 2021 6:01p
loading...
/zigman2/quotes/210597999/delayed
DAX
DX : Xetra Indices
15,687.09
-126.85 -0.80%
Volume: 72,088
Dec. 8, 2021 6:30p
loading...
/zigman2/quotes/210598409/delayed
UK : FTSE UK
7,337.05
-2.85 -0.04%
Volume: 0.00
Dec. 8, 2021 5:47p
loading...
/zigman2/quotes/210597958/delayed
FR : France: Euronext Paris
7,014.57
-50.82 -0.72%
Volume: 80,200
Dec. 8, 2021 6:05p
loading...
/zigman2/quotes/210561242/realtime/sampled
US : Tullett Prebon
1.1338
-0.0006 -0.0529%
Volume: 0.0000
Dec. 8, 2021 7:52p
loading...
/zigman2/quotes/203646520/delayed
UK : U.K.: London
128.64 p
-3.16 -2.40%
Volume: 33.95M
Dec. 8, 2021 4:35p
P/E Ratio
4.11
Dividend Yield
N/A
Market Cap
£11.03 billion
Rev. per Employee
£245,311
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.