The German stock index DAX futures were 1.04 percent or 140 points higher in early trading hours at 13,586 points on Tuesday, as political fears eased in Europe and the United States.
Market players continued to digest the beginning of official talks between Angela Merkel’s Christian Democratic Union and Social Democrats over a potential coalition government.
While nothing has been confirmed yet, this is a major step closer to secure a majority government and avoid re-elections in Europe’s first economy, which could potentially damage the image of status quo politics, increasing support for more extreme views.
The DAX ended Monday’s session at 13,463.69 points, adding a moderate +29.24 points or +0.22 percent, with financials, manufacturing and telecommunications adding the most.
- Deutsche Bank AG 2.93%
- Volkswagen VZO 2.60%
- Deutsche Telekom AG 2.11%
- Lufthansa -1.89%
- Vonovia -1.64%
- Deutsche Post -1.54%
Investors were also monitoring the political sphere in the United States, with Congress putting an end to a the federal government shutdown for at least three weeks.
President Donald Trump signed a bill aimed to extend funding the administration through February 8. In return to Democrats support, the Senate will debate on immigration matters.
News provided strong support for Wall Street, boosting the Dow Jones and the Nasdaq up to fresh record highs by the end of the session. European stocks are following that strong lead.
Today, attention will be directed mainly to the European economic front. Germany’s ZEW current conditions and economic sentiment for January is due for release as of 10:00 GMT.
Traders will also keep an eye on an meeting of European Finance ministers scheduled later in the day. And the United Kingdom is expected to show CBI industrial trends orders at 11:00 GMT.