German markets rally as conservatives win election and coalition talks begin

German markets reacted positively to the election of the CDU/CSU conservatives, with DAX futures rising 1.4% and the euro reaching a one-month high. Conservative leader Friedrich Merz now faces the task of forming a coalition government. Analysts expect a straightforward coalition with the SPD, but negotiations may take time. The German Ifo survey could indicate increased business confidence following the election results. In the U.S., consumer inflation expectations have surged, raising concerns for the Federal Reserve. Wall Street futures have shown some recovery, with investors awaiting Nvidia's earnings report for further market direction.