Last week, Germany’s political parties, the Christian Democrats, led by Chancellor Angela Merkel, and the Social Democrats politically thrashed out the structure of a coalition government. Talks had been on for two months and the resolution led to strength in German stocks. This coupled with the news that the country’s GfK consumer confidence indicator jumped to 7.4 points for December from 7.1 in November also encouraged investors. Germans can expect to benefit from expected largesse from the new government by way of higher minimum wages and pensions.
The German DAX benchmark index touched a record of 9424.62 on Friday and has rewarded investors by rising nearly 24% this year.
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