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German Elections: Investment Views

Perspectives» |

September 25, 2017

The German election outcome does preserve leadership continuity, but is nonetheless very disappointing for Chancellor A. Merkel. The prospects for the German economy will not change dramatically, although there will be a moderate fiscal stimulus. The outcome and composition of the Federal Government will have a very significant signaling effect for the markets. With Ms Merkel at the helm, political risk premia should remain low, further strengthening the case for European equities.

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