The European Markets were lower in early trading this morning with the FTSE down 0.4% and the Dax and CAC both down 0.2%.
It is the Euro that will be the main focus this week as traders digest the results of the German federal elections. ADS Securities analyst, Konstantinos Anthis commented “Angela Merkel has been elected Chancellor for the fourth time in a row but the surprise came from the number of votes the two main parties gathered and the rise in support for populist AfD.”
“The single currency is trading relatively lower at the beginning of today’s session and investors will now focus on the challenges that Merkel will face in in forming a coalition government.”
ECB President Mario Draghi will be speaking in Brussels today and interest will be high in any remarks the Italian policymaker makes on the expected progress of tapering. Konstantinos Anthis added “There is likely to be limited information about the form of the new German government and if there is no fresh news on taper from Draghi and the ECB, the euro should remain capped within its current range.”
Over in the US, Friday’s session closed mixed with large-cap Technology sector weakness weighing on three major indexes while Healthcare strength did its best to offset losses. Accendo markets analyst, Mike van Dulken noted “The Dow Jones finished marginally lower as Apple continued to fall, ending its worst week in almost 18 months, while both the S&P 500 and Nasdaq closed higher as Healthcare and Energy sectors gained.”
