German conservatives gain power in election boosting market confidence

Germany's recent election saw the CDU/CSU conservatives gain power, leading to a 1.4% rise in DAX futures and a 0.5% increase in the euro, reaching a one-month high. Conservative leader Friedrich Merz now faces coalition negotiations. Analysts expect a straightforward coalition with the SPD, but discussions may take time. The German Ifo survey could reflect positive business sentiment amid the leadership change, as concerns grow over U.S. support for NATO and Ukraine. EU leaders will meet on March 6 to discuss support for Ukraine and defense funding, likely requiring more debt issuance. In the U.S., inflation expectations have surged, impacting market sentiment ahead of key economic reports.