Conservatives In Germany to Lead Coalition Government, Far-Right Party Makes Significant Gain

Bridgette Randall
24 Feb, 2025
London

European markets edged higher as investors digested the results of the latest general election in Germany, and bond market yields stayed elevated. 

Benchmark indexes in Frankfurt and London edged higher, and in Paris and Milan, they struggled to stay above the flatline in Monday's trading. 

Investors generally welcomed the German election results, and the Christian Democratic Union's leader, Friedrich Merz, will head the next coalition government. 

Germany's far-right party AfD made significant gains in the general election and increased its share to 20.8% of the votes, nearly doubling its support.

On the economic front, investors are awaiting inflation reports from the eurozone, Germany, France, Italy, and Spain.

On the earnings front this week, investors are looking for forward to results from Smith & Nephew, AXA, Swiss Re, Pearson plc, Allianz, Holcim BASF, Rolls Royce, Saint-Gobain and Telefonica.

 

Europe Indexes and Yields

The DAX index increased by 0.7% to 22,442.25, the CAC-40 index edged lower 0.2% to 8,138.91, and the FTSE 100 index advanced by 0.3% to 8,683.27. 

The yield on 10-year German bonds inched higher to 2.46%, French bonds decreased to 3.21%, the UK gilts moved down to 4.56%, and Italian bonds edged lower to 3.54%.

The euro increased to $1.05; the British pound was higher at $1.26; and the U.S. dollar was lower and traded at 89.88 Swiss cents.

Brent crude decreased $0.03 to $74.40 a barrel, and the Dutch TTF natural gas was higher by €0.49 to €46.40 per MWh.

 

Europe Stock Movers

Just Eat Takeaway.com NV soared 54% to €19.20 after the Dutch investment company Prosus NV said it plans to acquire the company for €4.1 billion.

BayWa AG declined 2.5% to €8.58, and the Swiss investment group Energy Infrastructure Partners said it plans to increase its stake in the company to 65% from 49%.

GSK plc increased 1.3% to 1,447.50 pence after the UK-based pharmacy company launched its £2 billion stock repurchase plan. 

National Grid plc increased 7.5% to 972.20 pence, and the UK-based company agreed to sell its onshore renewable assets in the U.S. to Brookfield Asset Management.

B&M European Value Retail SA decreased 9.2% to 264.23 pence, and the deep discount store chain operator said its chief executive will retire at the end of April. 

The retailer also lowered its annual core profit outlook.