Euro hits a month because investors welcome the German election result-business live | Business

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The euro gathered this morning when European investors express relief about the result of Germany's choice – although this is mixed with fear of a slump in Wall Street at the end of the last week.

The euro has climbed to a one -month high after the middle right CDU/CSU The Allianz came to the top of the German elections with 28.5% of the votes, which means CDU Leader Friedrich Merz becomes Germany's next chancellor – as soon as he has agreed to a coalition.

A grand coalition – with that SPDwho fell to third place with 16.4% – seems likely.

That would keep right -wing extremists Affd (20.8%) in opposition.

This has lifted the euro compared to the dollar $ 1.0528 compared to the dollar, the highest since January 27th.

With almost 83p, the only currency is a little stronger against the pound.

Germany's main stock market index, the Daxis on the right track to jump almost 1% at the beginning of trade.

Analysts hope that the path to economic recovery could be easier for the German economy after several difficult years.

Kathleen BrooksResearch director at XTB, explained:

This is a crucial choice for Germany, and there is a fragile time for the country because it fights against economic discomfort and domestic friction. A coalition between the two largest German parties could be the most fertile under economic policy, since after two years of economic contraction, Germany makes it easier to restart economic growth.

The best way to do this is to reduce the restrictions of state loans in order to bring the economy back to life. This becomes much easier if you have the main parties as part of the coalition.

However, Germany would have to relax its “debt brake rules” before it can radically increase borrowing – and there may not be enough support for such a step in the Bundestag.

Holger Schmieding from Berenberg Point out that the AfD (152 seats) and the left (64 seats) have won more than a third of the 630 seats and thus can make all changes to the constitution a veto.

Blacksmith This suggests that this gives the “populist border” a fiscal veto “

AfD and the left have little in common. However, these two populist protest parties reject the help of Ukraine. Most likely, the new government will not negotiate the constitution (or another problem) with the AfD.

It could also be very difficult to agree to a debt brake reform that is primarily necessary to increase defense expenditure, including more help for Ukraine. The left wants to take off the debt brake. The agenda (soak the rich, spend more for welfare and less for defense) is the opposite of the Merz agenda. Never say, but it would be a tough struggle to find a compromise for compromises in order to express it easily.

Our German elections live blog will have full reporting on events today:

Elsewhere, the dealers digest the stock values ​​in Wall Street on Friday evening, after the latest survey among purchasing managers recorded a slowdown by the US company growth.

The S&P 500 Sank 1.7% for the worst day in two months on Friday.

The agenda

• 9 a.m. GMT: The Bear Conference of Bank of England 2025 was opened by the deputy governor Clare Lombardelli

• 9 a.m. GMT: German IFO Business Confidence Survey

• 10 a.m. GMT: inflation of the euro zone (final) for January

• 11 a.m. GMT: Bundesbank Monthly Report

• 6 p.m. GMT: Language of the Boe politician Swati Dhingra in the Birkbeck Center for Applied Makroeconomics 'Tension for turbulence: British inflation and prospects for monetary policy'