(Reuters) – German shares hit ten-day highs on Monday after the federal election outcome reduced the chances of a left-wing coalition gaining power, while broader European markets cheered a surge in crude prices that powered oil stocks.
Germany’s blue-chip DAX jumped 1%, leading gains among regional indexes, while the pan-European STOXX 600 index added 0.6% in early deals.
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 hard-left Linke party fell below the 5% threshold needed to enter parliament.
Oil & gas stocks jumped 1.2% as Brent futures headed for $80 per barrel amid supply concerns as parts of the world sees demand pick up with the easing of pandemic conditions. [O/R]
(Reporting by Sruthi Shankar in Bengaluru)
