Markets welcome the results of the German election with the rise of shares and the euro

The euro rose and the standard stock index rose in Germany after conservative leader Friedrich Mertz won the election on Sunday, which paved the way for the shift to increased spending. Investors bet that the government of Friedrich Mertz will abandon the strict financial policy approach in Germany, which boosts the economy, which was once the growth motor in Europe, a boost that he urgently needed. While the right ‘alternative to Germany’ party has doubled its support base to become the second most powerful party by 20.85, it could not reach a broken minority. German elections .. Mark that welcomes the DAX index increased by 0.8% in early transactions, while the MDAX index for medium -sized companies increased by 1.6%. The euro is reinforced against all currencies in the group of ten countries, rising by 0.7 % against the dollar. German bond prices fell slightly at the opening due to the expectation of increased debt sales (the issuance of new bonds). “It is comfortable that things will not be chaotic as expected,” said Friedrich Carrier, head of the RBC wealthy manegement in the British Isles and Asia. He continued: “There is a renewed hope that things will start to move forward as soon as the coalition is formed.” Germany awaits “decisive decisions” and looks at the policy decisions that will make the new regime as decisive, in the light of the Germany’s suffering of the slowdown, amid the threats of customs tariffs by US President Donald Trump and the effects of Russia’s war in Ukraine. Prior to the election, the assets had already begun with the price of the possibility of achieving a result of further loans. The prices of German bonds have dropped compared to the most important indicators, as long -term bonds have dropped more than their short -term crayer, which has made the yield curve since 2022 ((the width of the difference in yields between long -term and short -term effects). A record level, driven by the hope that the new German government pays strong economic reforms, and to reduce strict loan rules, known as debt button.