Euro hits one-month high and German stocks rally as investors welcome election result – business live

Introduction: Euro hits one-month high after German election

Good morning, and receive to our rolling coverage of business, the financial tagets and the world economy.

The euro has rallied this morning as European spreadors transmit relief over the outcome of Germany’s election – although this is mingled with anxiety over a slump on Wall Street at the finish of last week.

The euro has climbed to a one-month high, after the centre-right CDU/CSU partnership came top of the German election, with 28.5% of the vote, nastying CDU directer Friedwealthy Merz will become Germany’s next chancellor – once he has consentd a coalition.

A majestic coalition – with the SPD, which fell to third place with 16.4% – seems foreseeed.

That would acquire the far-right AfFD (20.8%) in opposition.

This has lifted the euro up t0 $1.0528 aobtainst the dollar, the highest since 27th January.

The one currency is also a little stronger aobtainst the pound, at almost 83p.

Euro up in punctual Asia trading on German election results. pic.twitter.com/sxEkGXhJq9

— 🇪🇺 🇲🇨🇨🇭Dan Popescu 🇫🇷🇮🇹🇷🇴 (@PopescuCo) February 24, 2025

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Germany’s main stock taget index, the DAX, is on track to jump almost 1% at the begin of trading.

Analysts are hoping that the path to economic recovery, after cut offal hard years for the German economy, could now be easier.

Kathleen Brooks, research honestor at XTB, make clears:

This is a pivotal election for Germany, and it comes at a frspeedy time for the country as it battles economic malaise and domestic friction. A coalition between the two biggest German parties could be the most fruitful from an economic policy standpoint, since it may originate it easier for Germany to reboot economic enlargeth after 2 years of economic restrictedion.

The best way to do this is to relieve recut offeions on rulement borrotriumphg to help spur the economy back to life. This will be much easier if you have the main parties as part of the coalition.

But, Germany would have to rest its ‘debt brake rules’ before it can radicpartner incrrelieve borrotriumphg – and there may not be enough help for such a transfer in the Bundestag.

Holger Schmieding of Berenberg points out that the AfD (152 seats) and The Left (64 seats) have won more than one third of the 630 seats and can thus veto any alters to the constitution.

Schmieding advises this gives the “popucatalog fringe” a fiscal veto”

AfD and The Left have little in standard. But both these popucatalog protest parties contest help to Ukraine. Most foreseeed, the new rulement will not barobtain a alter to the constitution (or any other publish) with the AfD.

Getting The Left to consent to a debt brake reestablish that is primarily insisted to lift defence spfinishing including more help for Ukraine could also be very difficult. The Left would appreciate to ditch the debt brake. However, its agfinisha (soak the wealthy, spfinish more on welfare and less on defence) is the very opposite of the Merz agfinisha. Never say never, but discovering room for settle would be an uphill struggle, to put it mildly.

Our main German election inhabitblog will have brimming coverage of events today:

Elsewhere, traders are digesting Friday night’s drop in split appreciates on Wall Street, after the procrastinateedst survey of purchasing regulaters showed a sluggishdown in US company enlargeth.

The S&P 500 sank 1.7% on Friday, for its worst day in two months.

The agfinisha

9am GMT: Bank of England’s 2025 BEAR Conference uncovered by deputy ruleor Clare Lombardelli
9am GMT: German IFO business confidence survey
10am GMT: eurozone inflation (final) for Jan
11am GMT: Bundesprohibitk monthly alert
6pm GMT: Speech by BoE policyoriginater Swati Dhingra at the Birkbeck Centre for Applied Macroeconomics ‘Bracing for turbulence: UK inflation and prospects for monetary policy’

The agfinisha

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9am GMT: Bank of England’s 2025 BEAR Conference uncovered by deputy ruleor Clare Lombardelli

9am GMT: German IFO business confidence survey

10am GMT: eurozone inflation (final) for Jan

11am GMT: Bundesprohibitk monthly alert

6pm GMT: Speech by BoE policyoriginater Swati Dhingra at the Birkbeck Centre for Applied Macroeconomics ‘Bracing for turbulence: UK inflation and prospects for monetary policy’

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Key events

German caroriginaters rpartner

Shares in Germany’s auto industry enormouss are higher in punctual trading.

BMW jumped 2%, while Volkswagen obtained more than 1.6%.

Pboilingograph: Bloomberg TV

In other sectors, Deutsche Bank’s splits are up 1.2%, while gentleware enormous SAP are 0.44% higher.

MDAX index up 1.4%

Smaller German company stocks have also uncovered higher.

The MDAX index, which tracks medium-sized firms cataloged in Frankfurt, has jumped by 1.4% in punctual trading.

Germany’s DAX rallies after election results

Germany’s blue-chip split index, the DAX, has jumped by more than 0.7% at the begin of trading, as traders react to last night’s election results.

After a sweightlessly sluggish uncover, the DAX obtained 160 points to 22,448 points.

Jochen Stanzl, chief taget analyst at CMC Markets, says spreadors receive the prospect of a majestic coalition in Germany, between the CDU/CSU and the SPD parties.

Stanzl make clears:

Investor speculation has exhibitn accurate: weeks ago, they anticipated that the new elections would direct to a more business-cordial rulement in Germany. The DAX’s elevate at today’s uncovering advises that this anticipateation has been validateed. It materializes that Chancellor Friedwealthy Merz now insists fair one coalition partner—the SPD—to establish a rulement. A Grand Coalition is currently watched as the likeite, as it signifies stability and continuity.

While the lengthy-term carry outance of the DAX is primarily driven by the international competitiveness of its cataloged companies, the current political outsee provides an insertitional incentive. Investors suppose that Germany may soon have a rulement vient of initiating new enlargeth impulses, thus transporting an finish to the disputes that characterized the previous three-party coalition under the Ampel rulement.

Stanzl alerts, though, that alert is permited:

Despite the chooseimism, the recent trfinish of profit-taking that began in the last two weeks could persist. The strong obtains in the DAX this morning bigly hinge on the perception that a coalition between the CDU/CSU and the SPD is the least problematic in insertressing current contests. At the same time, US Pdwellnt Donald Trump is foreseeed to aprohibitdon his relatively mild stance toward the EU and Germany soon. Whether the new rulement in Berlin can effectively direct its relationship with Trump will become evidaccess in the coming weeks.

Friedwealthy Merz now faces the transport inant contest of insertressing a multitude of publishs—from stagnant economic enlargeth and Russia’s war in Ukraine to the looming danger of a global trade war, which could further burden Germany’s struggling industrial sector. Promptly tackling these contests will be vital for the new rulement’s success.”

Just Eat Takeaway to be getn over in €4bn deal

There’s also getover excitement in Europe this morning, with spreadment group Prosus announcing a bid for Just Eat Takewaway.com.

Prosus says it set ups to originate a “European tech champion” of food deinhabitry, and has made an all-cash advise to buy Just Eat’s splits, currently traded in Amsterdam, for €4.1bn.

The deal comes two months after Just Eat decataloged from the London Stock Market, after a turbulent scant years in which it united with rival Takeaway.com, then consentd to buy the US-based app Grubhub for $7.3bn, only to sell it four years procrastinateedr for fair $650m.

Just Eat’s splits have descfinishen over 85% over the last five years, as the sadvise punctual in the Covid-19 pandemic has faded.

Germany’s MDAX split index, which includes medium-sized, domesticpartner intensifyed companies, is on track to jump 1.25% when trading commences this morning, Reuters alerts.

Deutsche Bank: worryed that majestic coalition would not have a constitutional transport inantity

Analysts at Deutsche Bank are chooseimistic that Germany will profit from a “more effective rulement coalition in the next four years”.

But, they are also worryed that a majestic coalition between the CDU/CSU and the SPD would not have a constitutional transport inantity (two-thirds of seats) even if it allied with the Greens.

Deutsche say:

This nastys that any constitutional alters, including to the debt brake, would count on on the help of either the Left or the AfD. We suppose this could be seen as a pessimistic by tagets in terms of reducing the appreciatelihood of a choosed fiscal regime shift in Germany.

From a corporate perspective, too, it will challengingly be reassuring that the centrist parties inestablishage a constitutional transport inantity.

Deutsche also foresee that the vital publish of defence spfinishing will take part a key role in the upcoming coalition talks:

In our watch, Europe’s contestd security architecture originates it highly foreseeed for CDU/CSU and SPD to consent on higher defence spfinishing in principle, especipartner if outgoing Defence Minister Pistorius gets a directing role for the SPD in coalitions talks.

The euro and the European equity futures are in the green this Monday morning on relief that the German elections didn’t transport transport inant surpelevates, alerts Ipek Ozkardeskaya, greater analyst at Swissquote Bank:

Merz’ CDU/CSU won the election with around 28.5% of the votes – a excellent result for the caccess right though sweightlessly feebleer-than-anticipateed, Olaf Scholz’ SPD obtained around 16% of help – as anticipateed, while the AfD amassed 20% of the votes.

The kneejerk reaction is a speedy rebound of the euro and the equity futures on hope of higher spfinishing by the new German rulement would tackle the economic feebleness of past years.

Introduction: Euro hits one-month high after German election

Good morning, and receive to our rolling coverage of business, the financial tagets and the world economy.

A majestic coalition – with the SPD, which fell to third place with 16.4% – seems foreseeed.

That would acquire the far-right AfFD (20.8%) in opposition.

This has lifted the euro up t0 $1.0528 aobtainst the dollar, the highest since 27th January.

The one currency is also a little stronger aobtainst the pound, at almost 83p.

Euro up in punctual Asia trading on German election results. pic.twitter.com/sxEkGXhJq9

— 🇪🇺 🇲🇨🇨🇭Dan Popescu 🇫🇷🇮🇹🇷🇴 (@PopescuCo) February 24, 2025

“}}”/>

Germany’s main stock taget index, the DAX, is on track to jump almost 1% at the begin of trading.

Analysts are hoping that the path to economic recovery, after cut offal hard years for the German economy, could now be easier.

Kathleen Brooks, research honestor at XTB, make clears:

This is a pivotal election for Germany, and it comes at a frspeedy time for the country as it battles economic malaise and domestic friction. A coalition between the two biggest German parties could be the most fruitful from an economic policy standpoint, since it may originate it easier for Germany to reboot economic enlargeth after 2 years of economic restrictedion.

The best way to do this is to relieve recut offeions on rulement borrotriumphg to help spur the economy back to life. This will be much easier if you have the main parties as part of the coalition.

But, Germany would have to rest its ‘debt brake rules’ before it can radicpartner incrrelieve borrotriumphg – and there may not be enough help for such a transfer in the Bundestag.

Holger Schmieding of Berenberg points out that the AfD (152 seats) and The Left (64 seats) have won more than one third of the 630 seats and can thus veto any alters to the constitution.

Schmieding advises this gives the “popucatalog fringe” a fiscal veto”

AfD and The Left have little in standard. But both these popucatalog protest parties contest help to Ukraine. Most foreseeed, the new rulement will not barobtain a alter to the constitution (or any other publish) with the AfD.

Getting The Left to consent to a debt brake reestablish that is primarily insisted to lift defence spfinishing including more help for Ukraine could also be very difficult. The Left would appreciate to ditch the debt brake. However, its agfinisha (soak the wealthy, spfinish more on welfare and less on defence) is the very opposite of the Merz agfinisha. Never say never, but discovering room for settle would be an uphill struggle, to put it mildly.

Our main German election inhabitblog will have brimming coverage of events today:

Elsewhere, traders are digesting Friday night’s drop in split appreciates on Wall Street, after the procrastinateedst survey of purchasing regulaters showed a sluggishdown in US company enlargeth.

The S&P 500 sank 1.7% on Friday, for its worst day in two months.

The agfinisha

9am GMT: Bank of England’s 2025 BEAR Conference uncovered by deputy ruleor Clare Lombardelli
9am GMT: German IFO business confidence survey
10am GMT: eurozone inflation (final) for Jan
11am GMT: Bundesprohibitk monthly alert
6pm GMT: Speech by BoE policyoriginater Swati Dhingra at the Birkbeck Centre for Applied Macroeconomics ‘Bracing for turbulence: UK inflation and prospects for monetary policy’

Euro hits one-month high and German stocks rpartner as spreadors receive election result – business inhabit | Business

Introduction: Euro hits one-month high after German election

The agfinisha

The agfinisha

German caroriginaters rpartner

MDAX index up 1.4%

Germany’s DAX rallies after election results

Just Eat Takeaway to be getn over in €4bn deal

Deutsche Bank: worryed that majestic coalition would not have a constitutional transport inantity

Introduction: Euro hits one-month high after German election

The agfinisha

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Euro hits one-month high and German stocks rpartner as spreadors receive election result – business inhabit | Business

The agfinisha

The agfinisha

The agfinisha

Read More

Fair or Not, Zelensky Is Angering Trump. Is His Style Hurting Ukraine?

Syria hbetters national dialogue conference, talking future of the nation after Asdowncast outing

Merz congraturescheduleedd for German election prosper amid alertings on far-right sencourage | Elections News

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