The European markets all dipped this Monday, with little to process beyond the far right surge at Sunday’s .
While Angela Merkel secured her fourth term as Chancellor with around 35% of the vote, that’s the worst result for the CDU since 1945, a shift largely due to the success of the far-right AfD, who, having existed for only 4 years, picked up 13% of the ballot. Merkel’s diminished authority – and the rise of a party with links, and similar eurosceptic views (among other things), to UKIP and France’s National Front – appears to be weighing on both the euro and the region’s indices.
The currency is down 0.3% against the , leaving it just above the $1.19 level it’s repeatedly returned to in the last couple of weeks. Against , meanwhile, it fell nearly half a percent, keeping it around the €0.88, 2 month low mark. Normally this would give a leg up to the and ; neither, however, seems particularly happy with the German election result, with both indices in the red by around 0.2%. Beyond the election, the only other thing on offer this morning is the , though a mild rise from 115.0 to 116.0 month-on-month is unlikely to really chance the tone of trading.
As for the , with sterling gaining on the euro, and rising 0.2% against the , the UK index dropped by 25 points, once again taking it below the 7300 mark it struggled with last week. There isn’t much to the UK economic calendar this Monday – or, in fact, much of the week (until Friday, at least) – meaning the FTSE is likely to remain trading in relationship the forex market.
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