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Markets wobble with election uncertainty

Monday, September 25, 2017 - 01:44

The single currency and European stocks slip after the bloc's most powerful leader German Chancellor Angela Merkel wins a fourth term but faces a fractured parliament as support for the far-right surges. As Laura Frykberg reports, to compound the problem a survey showed German business confidence also deteriorated unexpectedly in the weeks before the federal election.

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It was an election victory... for German Chancellor Angela Merkel... But a small one too for Germany's AFD - which have become the first far-right party to have parliamentary influence in 60 years. That, and the prospect of months of coalition building to form a government.. Has left investors unnerved. The euro slid 0.4 percent, while wider euro zone stocks dipped too. (SOUNDBITE) (German) HEAD OF CAPITAL MARKET ANALYSIS AT BAADER BANK, ROBERT HALVER, SAYING: "There is one constant, and that is Angela Merkel. But the DAX and traders also know that it's not going to be easy to build an alliance quickly." Despite winning the most votes. Merkel's bloc slumped to its worst result since 1949. New data out of Germany's IFO institute could.. Also prove a headache for the Chancellor.. Its business climate index edged down last month. (SOUNDBITE) (German) HEAD OF CAPITAL MARKET ANALYSIS AT BAADER BANK, ROBERT HALVER, SAYING: "It is very important, even though it will be difficult, that the new government can create an economic vision with jobs, social security so the electorate goes back to voting for the established parties." Political uncertainty also played on markets on the other side of the world. The New Zealand dollar weakened After the ruling party failed to secure a majority. The Pacific nation too now facing the possibility of a protracted period of coalition building. Japan's Prime Minister will be hoping for more certainty. Shinzo Abe has called a snap election to Take advantage of improved ratings. The Nikkei closed up ahead of the announcement.

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Markets wobble with election uncertainty

Monday, September 25, 2017 - 01:44