The German DAX index started the trading day on Monday with slight gains following the federal election. By 9:30 a.m., the leading index was calculated at around 22,315 points, 0.1 percent above the previous day’s closing level. Rheinmetall, Porsche and BMW led the list of top performers, while Siemens Energy, Siemens Healthineers and Adidas lagged behind.
“We see a relieved sigh of relief on the German stock market” said Thomas Altmann of QC Partners. The big surprises had been averted. “Investors had long been preparing for a coalition of the Union and SPD.” And with this coalition, the majority of investors could live with it. “The majority in the middle of the political spectrum stands.”
Union’s chancellor candidate Friedrich Merz had announced that a new government would be formed by Easter. “This promise and, in particular, the announcement of genuine economic reforms must be measured by the well next federal chancellor” Altmann said. The stock markets would quickly return to their daily routine after the initial sigh of relief. “Given the frighteningly weak economic situation in Germany, the new chancellor, his government and the first decisions will be closely watched by international investors as well.”
The European common currency was slightly weaker on Monday morning: one euro was worth 1.0473 US dollars and one dollar was worth 0.9548 euros.
Meanwhile, the oil price fell: a barrel of the North Sea’s Brent crude cost around $74.17 at 9 a.m. German time, which was 26 cents or 0.4 percent less than the previous day’s closing level.