European equities holds off impact of German political hullabaloo

European Markets

The stock market across the European continent showed its might against the impact of the ongoing political crisis in Germany as equities went on to finish in the positive territory despite a highly volatile session.

Germany is in the center of attention right now as current German Chancellor Angela Merkel failed to establish the so-called Jamaica coalition, which could result to a leadership challenge in the future that may end her 12-year reign as the country’s top leader.

European shares took advantage on the weakness of euro as the single currency lost its strength against major rivals, falling by 0.5%.

The pan-European STOXX 600 relied to the steady performance of its sectors, all closing in the bullish zone, to amass 0.67% gain.

Germany’s very own Frankfurt’s DAX 30 index chipped in 0.50% at 13 058.66, buoyed by a 1.33 advancement registered by the automotive sector, with German carmaker Volkswagen punching in near 5% gains.

France’s CAC 40 and Switzerland’s SMI clung to 0.40% and 1.26% gain respectively while United Kingdom’s FTSE 100 futures surged 0.12%, or 8.78 points, to close at 7 389.46.

The growing political turmoil in the country might soon result to a re-election, to which Merkel admitted that it would create better path for her and for the government.

An expert from City of London Markets stressed that a re-election may produce better results since Merkel’s victory last September spurred positive growth for the economy.


Leave a Reply

Your email address will not be published.