Interest rates pose little medium-term risk to equities in our view.
The German market would view such a grand coalition as slightly negative because it could mean reforms will take longer to enforce.
The market is beginning to price the end of the (Fed) rate hiking cycle in.
European markets still have a safety buffer from relative valuations that will protect equities from any downward pressure from rising interest rates.
It's difficult to say if it's cyclical or defensive sectors driving the market. Whatever sector is seeing some M&A speculation or activity is the one that's going well at the moment.
Fed and ECB rate hikes should not present a liquidity problem for equity markets.
The case for German equities does not rest on the outcome of the election. For more than a year now, change in Germany has been driven by the corporate sector, while government reform momentum has slowed down.
It was a slightly negative day, partly because of waiting for when the Fed will start raising rates.
The only trend you can really identify at the moment is that things seem to be M&A driven.
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