- Title: European shares rise on German election relief
- Date: 27th September 2021
- Summary: FRANKFURT, GERMANY (SEPTEMBER 27, 2021) (REUTERS) TRADING FLOOR SIGN READING (German) "STOCK EXCHANGE FRANKFURT" TRADER TRADING BOARD DAX GRAPH HEAD OF CAPITAL MARKETS ANALYSIS AT BAADER BANK, ROBERT HALVER, TALKING TO TRADER TRADER LOOKING AT COMPUTER MONITOR (SOUNDBITE) (German) HEAD OF CAPITAL MARKETS ANALYSIS AT BAADER BANK, ROBERT HALVER, SAYING: "The German stock exchange is relaxed: a leftist government was avoided. It would have meant too much uncertainty. It doesn't matter now whether we will get a Jamaica or traffic light coalition government, we can live with either. What's important however is that we get a government quickly. The new government needs to carry out historic reforms. That's essential. And now that the Greens and the FDP almost fell in love with each other I'm thinking this could turn into something." (SMILES) VARIOUS OF BANK SHARES ON ELECTRONIC BOARD TRADER VARIOUS OF DAX BOARD TRADER VARIOUS OF AUTOMOBILE AND TELECOMMUNICATIONS SHARES ON BOARD (SOUNDBITE) (German) HEAD OF CAPITAL MARKETS ANALYSIS AT BAADER BANK, ROBERT HALVER, SAYING: "Foreign countries want continuity when it comes to NATO or Europe's and Germany's geopolitical policies. That's secured now and no one needs to worry. Economic policies meanwhile are typically something everyone treats very egotistically: the Americans and the Chinese don't think of Germany and Europe. Everyone is for himself. What's important is that Europe and Germany stick together and that's hard enough but there is no alternative." DAX GRAPH TRADING FLOOR
- Embargoed: 11th October 2021 09:38
- Keywords: markets national election stocks
- Location: FRANKFURT, GERMANY
- City: FRANKFURT, GERMANY
- Country: Germany
- Topics: Europe,Economic Events
- Reuters ID: LVA001EWHV899
- Aspect Ratio: 16:9
- Story Text:German shares hit ten-day highs on Monday (September 27) after the federal election outcome reduced the chances of a left-wing coalition forming a government, while broader European markets cheered a surge in crude prices that powered oil stocks.
Germany's blue-chip DAX jumped 0.9%, leading gains among regional indexes, while the pan-European STOXX 600 index added 0.4%.
Germany's centre-left Social Democrats were set to start trying to form a government after they narrowly won their first national election since 2005, saying they would seek to form a coalition with the Greens and the liberal Free Democrats in what is dubbed as the "traffic light" coalition.
While it might take a while before the new government is formed, investors were relieved that the hard-left Linke party fell below the 5% threshold needed to enter parliament.
"The German stock exchange is relaxed: a leftist government was avoided. It would have meant too much uncertainty. It doesn't matter now whether we will get a Jamaica or traffic light coalition government, we can live with either. What's important however is that we get a government quickly," Robert Halver, head of capital analysis at Baader Bank, told Reuters TV at the Frankfurt stock exchange.
German real estate company Vonovia, aircraft engine maker MTU Aero Engines and renewables company Siemens Energy were the top gainers on the DAX. - Copyright Holder: REUTERS
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