The market is expecting that Frau Merkel will win her 3rd general election and become German Chancellor again. The one big unknown is whether her smaller FDP coalition partners can gain enough of a percentage of the overall vote to be allowed to enter the parliament. If they don’t, then she might be forced into a ‘grand coalition’ with the main opposition SPD party. Such events have happened before and Germany has thrived, but the initial impact might be EUR negative? Worth keeping in mind for Monday morning trade. The election is on Sunday.
