Germany’s federal election on Sunday (23 February) could trigger a broader European equites rally in the stock market of Europe’s largest economy, as investors anticipate a swathe of economic reforms from a new German chancellor.
As it stands, the conservative favourite, Friedrich Merz, and his Christian Democratic Union (CDU) party are expected to be the largest party in the Bundestag, but it is unlikely that any party will gain enough seats for an outright majority in the lower house. According to polling from YouGov, the CDU/CSU is expected to return just under 30% of the vote, with the nationalist AfD coming in second and at almost 20% of the vote. Meanwhile, the Social Democratic Party of Germany (SDP), of which Chancellor Olaf Scholz belongs, is expected to secure only 16% of the total number of votes. ...
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