European Stocks Cautious as Traders Assess Election Results
Germany Both the STOXX 50 and STOXX 600 were under pressure to start the week, with the former down 0.2% and the latter trading around the flatline, as traders digested the results of Germany’s election.
The CDU/CSU bloc won 28.6% of the vote, in line with expectations but needs to form a coalition to secure a parliamentary majority.
Negotiations could be extended and the far-right AfD and the Left Party together secured a third of the seats, enough to block key legislation in the new parliament, notably a debt tightening measure that would allow for increased public spending.
Schneider Electric (-4.5%) and Siemens Energy (-4.5%) were among the worst performers. Also, Prosus NV plunged almost 8% as the Dutch tech investor is set to acquire European food delivery company Just Eat Takeaway.com in a deal worth €4.1 billion.
On the other hand, the automotive sector is in the green zone, namely BMW (2.2%), Mercedes-Benz (1.7%) and VW (1.5%). The defense sector also strengthened, namely Rheinmetall (3.9%). (ads)
Source: Trading Economics
